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The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A 0.35 $40,348 $-3,668 Product B 0.40 $35,776
The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A 0.35 $40,348 $-3,668 Product B 0.40 $35,776 $8,944 Product C 0.43 $24,411 $10,462 Sales of Product A were $104,800, but X Company is still considering dropping it because of its reported loss. If it does, $20,174 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product C by $42,400. If X Company does drop Product A and increases sales of Product C, X Company's profits will change by Tries 0/3
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