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The following infomation is for three of X Company's products: Product A Product B Product C Contribution margin rate 0.37 0.40 0.43 Fixed costs $30,636

The following infomation is for three of X Company's products:

Product A Product B Product C
Contribution margin rate 0.37 0.40 0.43
Fixed costs $30,636 $30,968 $41,056
Profit $7,659 $13,272 $-3,732

Sales of Product C were $86,800, but X Company is still considering dropping it because of its reported loss. If it does, $20,528 of the fixed costs associated with it can be avoided, and sales of Product A can be increased by $42,300.


If X Company does drop Product C and increases sales of Product A, X Company's profits will change by

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