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The following Income Statement is for X Company and its only two products - A and B: Product B Total $177,080 97,415 $79,665 Product A
The following Income Statement is for X Company and its only two products - A and B: Product B Total $177,080 97,415 $79,665 Product A $88,020 46,651 $41,369 $89,060 50,764 $38,296 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 66,920 34,880 $-22,135 42,440 28,880 $-29,951 24,480 6,000 $7,816 Because Product A is showing a loss, X Company is considering dropping it, and in its place, increase sales of Product B by $15,570. If it drops Product A and increases sales of Product B, X Company's profits will increase by Submit Answer Tries 0/3
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