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The following information is for X Company's two products - A and B: Product A Product B Total contribution margin $37,840 $38,640 Contribution margin rate

The following information is for X Company's two products - A and B:

Product A Product B
Total contribution margin $37,840 $38,640
Contribution margin rate 43% 42%
Fixed costs $57,570 $25,570
Profit $-19,730 $13,070

10% of Product A's fixed costs are allocated; 18% of Product B's fixed costs are allocated. The unallocated fixed costs are directly related to the individual products. The company is considering dropping Product A because of the $19,730 loss. If X Company drops A, it will use the freed-up resources to increase sales of Product B by $14,200, but there will be additional fixed costs of $2,800. If X Company drops A, firm profits will change by

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