Question
The following information is for X Company's two products - A and B: Product A Product B Sales $86,000 $85,000 Total contribution margin 35,260 34,000
The following information is for X Company's two products - A and B:
| Product A | Product B | |
| Sales | $86,000 | $85,000 |
| Total contribution margin | 35,260 | 34,000 |
| Fixed costs: | ||
| Avoidable | 22,000 | 44,500 |
| Unavoidable | 6,000 | 30,000 |
| Profit | $7,260 | $-40,500 |
The company is considering dropping Product B because of the $40,500 loss. If X Company drops Product B, it will use the freed-up resources to increase sales of Product A by $14,000. If X Company drops Product B and increases sales of A, firm profits will change by
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The Chief Value Officer Accountants Can Save The Planet
Authors: Mervyn King, Jill Atkins
1st Edition
1783532939, 978-1783532933
