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The following income statement is for X Company's two products, A and B: Product A $91,000 54,600 $36,400 Product B $88,000 46,640 $41,360 Revenue Total
The following income statement is for X Company's two products, A and B: Product A $91,000 54,600 $36,400 Product B $88,000 46,640 $41,360 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 14,284 9,926 $12,190 28,756 22,594 $-9,990 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 $34,900, with $3,800 of additional fixed costs, what will be the effect on firm profits
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