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The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A Product B Product C 0.35 $28,840
The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A Product B Product C 0.35 $28,840 $7,210 0.39 0.44 $50,579 $27,320 5-4,598 $11,708 Sales of Product B were $117,900, but X Company is still considering dropping it because of its reported loss. If it does, $25,290 of the fixed costs associated with it can be avoided, and sales of Product A can be increased by $42,000. If X Company does drop Product B and increases sales of Product A, X Company's profits will change by OA: $-2,547 OB: $-3,387 OC: $-4,505 OD: $-5,991 OE: 5-7,969 OF: $-10,598
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