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The following information is for X Company's two products - A and B: Product A Product B Sales $91,000 $88,000 Total contribution margin 36,400 35,200

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

Product A Product B
Sales $91,000 $88,000
Total contribution margin 36,400 35,200
Fixed costs:
Avoidable 21,000 37,500
Unavoidable 6,000 27,000
Profit $9,400 $-29,300

The company is considering dropping Product B because of the $29,300 loss. If X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $11,700. If X Company drops Product B and increases sales of A by $11,700, firm profits will change by

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