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The following income statement is for X Company's two products, A and B: Product A $85,000 45,050 $39,950 Product B $85,000 51,000 $34,000 Revenue Total
The following income statement is for X Company's two products, A and B: Product A $85,000 45,050 $39,950 Product B $85,000 51,000 $34,000 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 29,828 26,452 $-16,330 14,466 13,354 $6,180 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 $38,100, with $3,600 of additional fixed costs, what will be the effect on firm profits
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