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The following information is for X Company's two products - A and B: Product A $95,000 41,800 Product B $93,000 37,200 Sales Total contribution margin
The following information is for X Company's two products - A and B: Product A $95,000 41,800 Product B $93,000 37,200 Sales Total contribution margin Fixed costs: Avoidable Unavoidable Profit 23,000 7,000 $11,800 39,500 25,000 $-27,300 The company is considering dropping Product B because of the $27,300 loss. If X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $12,000. If X Company drops Product B and increases sales of A by $12,000, firm profits will change by OA: $3,605 OB: $5,228 OC: $7,580 OD: $10,991 OE: $15,937 OF: $23,109
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