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The following infomation is for three of X Company's products: Product A Product B Product C Contribution margin rate 0.36 0.40 0.43 Fixed costs $40,036

The following infomation is for three of X Company's products:

Product A Product B Product C
Contribution margin rate 0.36 0.40 0.43
Fixed costs $40,036 $30,940 $31,854
Profit $-3,640 $13,260 $7,964

Sales of Product A were $101,100, but X Company is still considering dropping it because of its reported loss. If it does, $20,018 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product C by $40,000. If X Company does drop Product A and increases sales of Product C, X Company's profits will change by

A: $618 B: $822 C: $1,093 D: $1,454 E: $1,933 F: $2,571
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