The following budgeted information is for X Company's two products, A and B, for 2022:

	Product A	Product B
Sales	$89,800	$92,500
Contribution margin	39,512	41,625
Fixed costs
Avoidable	21,940	32,890
Unavoidable	6,880	26,940
Profit	$10,692	$-18,205

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 $16,630.

If X Company drops Product B in 2022 and increases sales of Product A, company profits will change by

A: $-802

B: $-1,066

C: $-1,418

D: $-1,886

E: $-2,508

F: $-3,336

The following budgeted information is for X Company's two products, A and B, for 2022: Product A $89,800 39,512 Product B $92,500 41,625 Sales Contribution margin Fixed costs Avoidable Unavoidable Profit 21,940 6,880 $10,692 32,890 26,940 $-18,205 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 $16,630. If X Company drops Product B in 2022 and increases sales of Product A, company profits will change by A: $-802 B: $-1,066| OC: $-1,418 D: $-1,886 E: $-2,508 F: $-3,336 Submit Answer Tries 0/99