The following budgeted information is for X Company's two products, A and B, for 2022:...
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The following budgeted information is for X Company's two products, A and B, for 2022: Product A Product B Sales $86,200 $91,500 Contribution margin 34,480 36,600 Fixed costs Avoidable 37,560 22,240 Unavoidable 26,860 7,110 Profit $-29,940 $7,250 Because of the budgeted loss for Product A, X Company is considering dropping it in 2022. If Product A is dropped, the marketing department thinks that sales of Product B can be increased by $15,720. If X Company drops Product A in 2022 and increases sales of Product B, company profits will change by
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