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The following infomation is for three of X Company's products: Product A Contribution margin rate Fixed costs Profit 0.37 $40,008 $-3,637 Product B 0.39 $31,395
The following infomation is for three of X Company's products: Product A Contribution margin rate Fixed costs Profit 0.37 $40,008 $-3,637 Product B 0.39 $31,395 $13,455 Product C 0.43 $27,662 $11,855 Sales of Product A were $98,300, but X Company is still considering dropping it because of its reported loss. If it does, $20,004 of the fixed costs associated with it can be avoided, and sales of Product C can be increased by $43,800. If X Company does drop Product A and increases sales of Product C, X Company's profits will change by Submit Answer Tries 0/4
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