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The following information is for X Company's two products - A and B: Product Product B Sales $91,000 $91,000 Total contribution 40,040 36,400 margin Fixed
The following information is for X Company's two products - A and B: Product Product B Sales $91,000 $91,000 Total contribution 40,040 36,400 margin Fixed costs: Avoidable 25,000 28,500 Unavoidable 6,000 29,000 Profit $9,040 $-21,100 The company is considering dropping Product B because of the $21,100 loss. If X Company drops Product B, it can 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 by $14,000, firm profits will change by A: $-1,067 B: $-1,206 C: $-1,363 D: $-1,540 E: $-1,740 OF: $-1,966 Submit Answer Tries 0/99
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