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The following infomation is for three of X Company's products: Product A Product B 0.37 0.40 Contribution margin rate Fixed costs Profit Product C 0.44
The following infomation is for three of X Company's products: Product A Product B 0.37 0.40 Contribution margin rate Fixed costs Profit Product C 0.44 $41,430 $-3,766 $25,822 $11,067 $33,432 $14,328 Sales of Product C were $85,600, but X Company is still considering dropping it because of its reported loss. If it does, $20,715 of fixed costs can be avoided, and it can use use the freed-up resources to increase sales of Product B by $43,400. If X Company does drop Product C and increases sales of Product B, X Company's profits will change by A: $411 B: $547 C: $727 D: $967 E: $1,287 F: $1,711
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