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The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A 0.37 $30,310 $7,578 Product B 0.40 $35,552
The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A 0.37 $30,310 $7,578 Product B 0.40 $35,552 $8,888 Product C 0.44 $38,284 $-3,480 Sales of Product C were $79,100, but X Company is still considering dropping it because of its reported loss. If it does, $19,142 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product A by $43,800. X Company does drop Product C and increases sales of Product A, X Company's profits will change by A: $290 B: $340|| OC: $398 D: $465| OE: $544| OF: $637 Tries 0/99 4
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