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The following information is for X Company's two products, A and B: Product Product B Revenue $85,000 $90,000 Total contribution 35,700 margin Total fixed costs

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The following information is for X Company's two products, A and B: Product Product B Revenue $85,000 $90,000 Total contribution 35,700 margin Total fixed costs Profit 38,700 28,360 50,730 $7,340 $-12,030 $14,180 of Product A's fixed costs are avoidable; $26,380 of Product B's fixed costs are avoidable. X Company plans to drop Product B since it shows a loss and increase sales of Product A by $34,400. Accompanying the sales increase will be a fixed cost increase of $4,800. If X Company drops Product B and increases Product A sales, what will be the effect on firm profits? Submit AnswerTries 0/3

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