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The following information is for X Company's two products A and B Product B Product A Sales $86,000 $86,000 Total contribution margin 34,400 34,400 Fixed
The following information is for X Company's two products A and B Product B Product A Sales $86,000 $86,000 Total contribution margin 34,400 34,400 Fixed costs: Avoidable 20,000 49,000 Unavoidable 8,000 30,000 Profit $6,400 $-44,600 The company is co R ping Product B because o dle 00 loss. If X Company drops Product B, it will use the freed-up resources to increase sales of Product A by $15,000. If X Company drops Produc increases sales profit change by
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