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The following income statement is for X Company's two products, A and B: Product A $90,000 53,100 $36,900 Product B $94,000 51,700 $42,300 Revenue Total
The following income statement is for X Company's two products, A and B: Product A $90,000 53,100 $36,900 Product B $94,000 51,700 $42,300 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 15,995 15,995 $4,910 30,871 | 23,289 $-11,860 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 $31,500, with $3,800 of additional fixed costs, what will be the effect on firm profits? A: $-1,596 OB: $-2,314 OC: $-3,355 OD: $-4,865 OE: $-7,054 OF: $-10,228 Submit Answer Tries 0/99
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