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The following income statement is for X Company's two products, A and B: Product A Product B $94,000 54,520 $39,480 Revenue $90,000 Total variable 54,000

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The following income statement is for X Company's two products, A and B: Product A Product B $94,000 54,520 $39,480 Revenue $90,000 Total variable 54,000 costs Total contribution $36,000 margin Total fixed costs Avoidable 14,538 Unavoidable 10,102 Profit $11,360 31,326 22,684 $-14,530 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 $38,900, with $4,600 of additional fixed costs, what will be the effect on firm profits? Submit Answer Tries 0/3

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