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The following information is for X Company's two products - A and B: Product A Product B Sales $89,000 $89,000 Total contribution margin 35,600 35,600

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

Product A Product B
Sales $89,000 $89,000
Total contribution margin 35,600 35,600
Fixed costs:
Avoidable 22,000 32,000
Unavoidable 6,000 28,000
Profit $7,600 $-24,400

The company is considering dropping Product B because of the $24,400 loss. If X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $12,900. If X Company drops Product B and increases sales of A by $12,900, firm profits will change by

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