Question
The following information is for X Company's two products - A and B: Product A Product B Sales $89,000 $92,000 Total contribution margin 39,160 36,800
The following information is for X Company's two products - A and B:
| Product A | Product B | |
| Sales | $89,000 | $92,000 |
| Total contribution margin | 39,160 | 36,800 |
| Fixed costs: | ||
| Avoidable | 23,000 | 41,000 |
| Unavoidable | 5,000 | 26,000 |
| Profit | $11,160 | $-30,200 |
The company is considering dropping Product B because of the $30,200 loss. If X Company drops Product B, it will use the freed-up resources to increase sales of Product A by $19,000. If X Company drops Product B and increases sales of A, firm profits will change by
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Comprehensive Audits Of Radiotherapy Practices A Tool For Quality Improvement, Quality Assurance Team For Radiation Oncology
Authors: International Atomic Energy Agency
1st Edition
9201037074, 978-9201037077
