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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
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 0/3Step by Step Solution
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