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The following income statement is for X Company's two products, A and B: Product A $87,000 44,370 $42,630 Product B $94,000 53,580 $40,420 Revenue Total
The following income statement is for X Company's two products, A and B: Product A $87,000 44,370 $42,630 Product B $94,000 53,580 $40,420 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 29,843 24,417 $-11,630 16,616 14,154 $9,650 If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $32,600, with $3,000 of additional fixed costs, what will be the effect on firm profits
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