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The following income statement is for X Company's two products, and B: Product A Revenue Total variable costs Total contribution margin Total fixed costs $85,000
The following income statement is for X Company's two products, and B: Product A Revenue Total variable costs Total contribution margin Total fixed costs $85,000 50,150 $34,850 Product B $92,000 55,200 $36,800 Avoidable Unavoidable 16,604 15,326 $2,920 29,490 29,490 $-22,180 Profit 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 $30,600, with $4,400 of additional fixed costs, what will be the effect on firm profits? Submit Answer Tries 0/3
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