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

	Product A	Product B
Sales	$91,000	$89,000
Total contribution margin	39,130	35,600
Fixed costs:
Avoidable	22,000	36,000
Unavoidable	6,000	27,000
Profit	$11,130	$-27,400

The company is considering dropping Product B because of the $27,400 loss. If X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $11,800. If X Company drops Product B and increases sales of A by $11,800, firm profits will change by

The following information is for X Company's two products - A and B: Product A $91,000 39,130 Product B $89,000 35,600 Sales Total contribution margin Fixed costs: Avoidable Unavoidable Profit 22,000 6,000 $11,130 36,000 27,000 $-27,400 The company is considering dropping Product B because of the $27,400 loss. If X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $11,800. If X Company drops Product B and increases sales of A by $11,800, firm profits will change by Submit Answer Tries 0/3