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The following information is for X Company's two products A and B: Product Product A B Sales $92,000 $87,000 Total contribution 37,720 34,800 margin Fixed

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The following information is for X Company's two products A and B: Product Product A B Sales $92,000 $87,000 Total contribution 37,720 34,800 margin Fixed costs: Avoidable 20,000 21,000 Unavoidable 5,000 28,000 Profit $12,720 $-14,200 The company is considering dropping Product B because of the $14,200 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 IOA: OB: Oc: OD: OE: F: $-2,576 $-3,426 $-4,557 $-6,060 $-8,060 $-10,720

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