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The following income statement is for X Company's two products, A and B: Product A $89,000 52,510 $36,490 Product B $95,000 53,200 $41,800 Revenue Total
The following income statement is for X Company's two products, A and B: Product A $89,000 52,510 $36,490 Product B $95,000 53,200 $41,800 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 29,116 27,974 $-20,600 14,651 10,609 $16,540 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 $27,800, with $4,400 of additional fixed costs, what will be the effect on firm profits? DA: $359 B: $405c: $458 OD: $517 DE: $585 OF: $661
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