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The following are the budgeted profit functions for X Company's two products, A and B,...

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Accounting

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The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .44 (R) - $31,150 Product B: P = .51 (R) - $57,290 where R is revenue. Budgeted revenue for the two products are $85,000 and $95,000, respectively. Avoidable fixed costs for the two products are $19,002 and $33,228, respectively. The company is considering dropping Product B because it appears to be losing money. If it does, the resulting freed-up resources can be used to increase revenue from sales of Product A by $35,600, but that will require $2,600 of additional fixed costs. If X Company drops B and increases revenue from A, firm profits will change by F: $-2,158 OA: $-337|OB: $-488 Oc: $-708 OD: $-1,026 OE: $-1,488 Submit Answer Tries 0/99

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