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The following income statement is for X Company's two products, A and B: Revenue Product A $90,000 45,900 $44,100 Product B $88,000 50,160 $37,840 Total
The following income statement is for X Company's two products, A and B: Revenue Product A $90,000 45,900 $44,100 Product B $88,000 50,160 $37,840 Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 32,568 | 21,712 $-10,180 13,972 10,978 $12,890 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 $28,300, with $4,400 of additional fixed costs, what will be the effect on firm profits
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