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The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A 0.36 $24,016 $10,292 Product B 0.39 $48,649

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The following infomation is for three of X Company's products: Contribution margin rate Fixed costs Profit Product A 0.36 $24,016 $10,292 Product B 0.39 $48,649 $-4,423 Product C 0.45 $28,044 $7,011 Sales of Product B were $113,400, but X Company is still considering dropping it because of its reported loss. If it does, $24,324 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product A by $40,000. If X Company does drop Product B and increases sales of Product A, X Company's profits will change by

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