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The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $174,760 $85,650

The following income statement is for X Company and its only two products - A and B:

Total Product A Product B
Sales $174,760 $85,650 $89,110
Variable Costs 96,836 51,390 45,446
Contribution margin $77,924 $34,260 $43,664
Fixed costs:
Avoidable 71,970 24,600 47,370
Unavoidable 31,500 5,270 26,230
Profit $-25,546 $4,390 $-29,936

Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be image text in transcribed

The following income statement is for X Company and its only two products - A and B: Total $174,760 96,836 $77,924 Product A $85,650 51,390 $34,260 Product B $89,110 45,446 $43,664 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 71,970 31,500 $-25,546 24,600 5,270 $4,390 47,370 26,230 $-29,936 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be Submit Answer Tries 0/3

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