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The following are the budgeted profit functions for X Company's two products, A and B, next year: Product A: P = .44 (R) - $27,450

The following are the budgeted profit functions for X Company's two products, A and B, next year:

Product A: P = .44 (R) - $27,450

Product B: P = .46 (R) - $55,560

where R is revenue. Budgeted revenue for the two products are $94,000 and $89,000, respectively. Unavoidable fixed costs for the two products are $10,706 and $25,002, respectively. The company is considering dropping Product B; if it does, the resulting freed-up resources can be used to increase revenue from sales of Product A by $17,400, with no additional fixed costs. If X Company drops B and increases revenue from A, firm profits will change by

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