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The following income statement is for X Company's two products, A and B: Product A $92,000 54,280 $37,720 Product B $91,000 47,320 $43,680 Revenue Total
The following income statement is for X Company's two products, A and B: Product A $92,000 54,280 $37,720 Product B $91,000 47,320 $43,680 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 15,768 10,512 $11,440 26,887 23,843 $-7,050 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 $28,200, with $4,800 of additional fixed costs, what will be the effect on firm profits
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