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The following income statement is for X Company's two products, A and B: Product A Product B $90,000 51,300 $38,700 Revenue $90,000 Total variable 48,600
The following income statement is for X Company's two products, A and B: Product A Product B $90,000 51,300 $38,700 Revenue $90,000 Total variable 48,600 costs Total contribution $41,400 margin Total fixed costs Avoidable 33,538 Unavoidable 26,352 Profit $-18,490 15,562 12,228 $10,910 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 $36,400, with $4,200 of additional fixed costs, what will be the effect on firm profits? A: $2,812B: $3,177|C: $3,590 OD: $4,057 OE: $4,585 OF: $5,181
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