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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 0.45 Fixed costs $24,872

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

Product A Product B Product C
Contribution margin rate 0.36 0.40 0.45
Fixed costs $24,872 $48,576 $33,228
Profit $10,660 $-4,416 $8,307

Sales of Product B were $110,400, but X Company is still considering dropping it because of its reported loss. If it does, $24,288 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product C by $40,400. If X Company does drop Product B and increases sales of Product C, X Company's profits will change by

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