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The following infomation is for three of X Company's products: Product A Contribution margin rate Fixed costs Profit 0.35 Product B 0.40 Product C
The following infomation is for three of X Company's products: Product A Contribution margin rate Fixed costs Profit 0.35 Product B 0.40 Product C 0.45 $37,422 $-3,402 $35,264 $8,816 $24,318 $10,422 Sales of Product A were $97,200, but X Company is still considering dropping it because of its reported loss. If it does, $18,711 of the fixed costs associated with it can be avoided, and sales of Product B can be increased by $43,700. If X Company does drop Product A and increases sales of Product B, X Company's profits will change by A: $1,586 B: $1,856 C: $2,171 OD: $2,540 OE: $2,972 OF: $3,477 Submit Answer Tries 0/99
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