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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 $40,537 $-3,685 Product B 0.39
The following infomation is for three of X Company's products: Product A Contribution margin rate Fixed costs Profit 0.37 $40,537 $-3,685 Product B 0.39 $34,757 $8,689 Product C 0.43 $30,375 $7,594 Sales of Product A were $99,600, but X Company is still considering dropping it because of its reported loss. If it does, $20,269 of the fixed costs associated with it can be avoided, and sales of Product C can be increased by $42,500. If X Company does drop Product A and increases sales of Product C, X Company's profits will change by A: $1,692 B: $1,912 OC: $2,160 D: $2,441 E: $2,758 OF: $3,117 Submit Answer Tries 0/99
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