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The following income statement is for X Company's two products, A and B: Product A $95,000 52,250 $42,750 Product B $87,000 | 48,720 $38,280 Revenue
The following income statement is for X Company's two products, A and B: Product A $95,000 52,250 $42,750 Product B $87,000 | 48,720 $38,280 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 30,330 20,220 $-7,800 14,110 12,020 $12,150 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 $34,800, with $4,800 of additional fixed costs, what will be the effect on firm profits? 2442 Submit Answer Incorrect. Tries 1/3 Previous Tries
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