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The following income statement is for X Company's two products, A and B: Product A $87,000 | 48,720 $38,280 Product B $89,000 51,620 $37,380 Revenue
The following income statement is for X Company's two products, A and B: Product A $87,000 | 48,720 $38,280 Product B $89,000 51,620 $37,380 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 13,815 13,815 $10,650 29,007 23,733 $-15,360 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 $24,300, with $5,000 of additional fixed costs, what will be the effect on firm profits? A: $-2,145 B: $-2,681 OC: $-3,351OD: $-4,189 OE: $-5,236 OF: $-6,545
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