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The following information is for X Company's two products, A and B: Product A Product B Revenue $93,000 $90,000 Total contribution margin $39,990 $37,800 Total

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

Product A Product B
Revenue $93,000 $90,000
Total contribution margin $39,990 $37,800
Total fixed costs $24,920 $57,550
Profit $15,070 $-19,750

$4,486 of Product A's fixed costs are avoidable; $9,784 of Product B's fixed costs are avoidable. X Company is considering dropping Product B. If it does, it can use the freed-up resources to increase sales of Product A by $34,500, but $2,400 of additional fixed costs will be incurred. If X Company drops Product B and increases Product A sales, firm profits will fall by

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