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The following income statement is for X Company's two products, A and B: Product A $87,000 50,460 $36,540 Product B $86,000 49,020 $36,980 Revenue Total
The following income statement is for X Company's two products, A and B: Product A $87,000 50,460 $36,540 Product B $86,000 49,020 $36,980 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 15,943 15,317 $5,280 31,069 | 21,591 $-15,680 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 $37,700, with $4,200 of additional fixed costs, what will be the effect on firm profits? C: $2,433| D: $3,236E: $4,303 F: $5,723 A: $1,375 B: $1,829 Submit Answer Tries 0/99
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