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The following income statement is for X Company's two products, A and B: Product Product $89,000 52,510 $36,490 $88,000 44,880 $43,120 Revenue Total variable costs
The following income statement is for X Company's two products, A and B: Product Product $89,000 52,510 $36,490 $88,000 44,880 $43,120 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 14,963 11,757 $9,770 29,934 26,546 $-13,360 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 $30,200, with $3,200 of additional fixed costs, what will be the effect on firm profits
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