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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 $42,084 $-3,826 Product B 0.40 $33,376
The following infomation is for three of X Company's products: Product A Contribution margin rate Fixed costs Profit 0.37 $42,084 $-3,826 Product B 0.40 $33,376 $14,304 Product C 0.44 $26,488 $11,352 Sales of Product A were $103,400, but X Company is still considering dropping it because of its reported loss. If it does, $21,042 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product B by $43,200. If X Compar does drop Product A and increases sales of Product B, X Company's profits will change by OA: $39 B: $44| OC: $50 D: $57 | OE: $64 OF: $72
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