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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 $25,304 $10,845 Product B 0.40 $38,400
The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A 0.37 $25,304 $10,845 Product B 0.40 $38,400 $9,600 Product C 0.44 $38, 139 $-3,467 Sales of Product C were $78,800, but X Company is still considering dropping it because of its reported loss. If it does, $19,070 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product A by $42,800. If X Company does drop Product C and increases sales of Product A, X Company's profits will change by OA: $36|OB: $53 OC: $77 OD: $111 OE: $161 OF: $234 Tries 0/99
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