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The following income statement is for X Company's two products, A and B: Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Product
The following income statement is for X Company's two products, A and B: Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Product A $91,000 46,410 $44,590 Product B $87,000 49,590 $37,410 Unavoidable 34,279 | 23,821 $-13,510 18,564 12,376 $6,470 Profit 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 $32,000, with $3,400 of additional fixed costs, what will be the effect on firm profits? A: $43 B: $49 OC: $55 D: $63 OE: $71 OF: $80 Submit Answer Tries 0/99
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