The following infomation is for three of X Company's products: Product A Product B Product C Contribution
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Question:
The following infomation is for three of X Company's products:
Product A Product B Product C
Contribution margin rate 0.36 0.39 0.43
Fixed costs $39,640 $34,476 $23,237
Profit $-3,604 $8,619 $9,959
Sales of Product A were $100,100, but X Company is still considering dropping it because of its reported loss. If it does, $19,820 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product B by $41,000. If X Company does drop Product A and increases sales of Product B, X Company's profits will change by
A: $-165 B: $-193 C: $-226 D: $-265 E: $-310 F: $-362
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