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The following income statement is for X Company's two products, A and B: Product Product B A $87,000 48,720 $38,280 $88,000 52,800 $35,200 Revenue Total
The following income statement is for X Company's two products, A and B: Product Product B A $87,000 48,720 $38,280 $88,000 52,800 $35,200 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 14,999 14,411 $8,870 29,744 24,336 $-18,880 If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $38,000, with $3,800 of additional fixed costs, what will be the effect on firm profits
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