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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 $38,269 $-3,479 Product B 0.40 $35,680
The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A 0.35 $38,269 $-3,479 Product B 0.40 $35,680 $8,920 Product C 0.45 $28,318 $12,136 Sales of Product A were $99,400, but X Company is still considering dropping it because of its reported loss. If it does, $19,134 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product B by $44,700. If X Company does drop Product A and increases sales of Product B, X Company's profits will change by A: $2,224 B: $2,781| OC: $3,476|| OD: $4,345 E: $5,431| OF: $6,789
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