Question
The following infomation is for three of X Company's products: Product A Product B Product C Contribution margin rate Fixed costs Profit 0.37 0.40
The following infomation is for three of X Company's products: Product A Product B Product C Contribution margin rate Fixed costs Profit 0.37 0.40 $41,229 $-3,748 $36,256 $9,064 0.45 $26,397 $11,313 Sales of Product A were $101,300, but X Company is still considering dropping it because of its reported loss. If it does, $20,615 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product C by $44,000. If X Company does drop Product A and increases sales of Product C, X Company's profits will change by
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