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The following budgeted information is for X Company's two products, A and B, for 2022: Product A Product B Sales $86,900 $88,600 Contribution margin 37,367
The following budgeted information is for X Company's two products, A and B, for 2022: Product A Product B Sales $86,900 $88,600 Contribution margin 37,367 41,642 Fixed costs Avoidable 20,590 42,770 Unavoidable 5,510 25,790 Profit $11,267 $-26,918 Because of the budgeted loss for Product B, X Company is considering dropping it in 2022. If Product B is dropped, the marketing department thinks that sales of Product A can be increased by $14,240.
If X Company drops Product B in 2022 and increases sales of Product A, company profits will change by
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