The following information is for X Company's two products - A and B: ...
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Accounting
The following information is for X Company's two products - A and B:
Product A
Product B
Sales
$91,000
$89,000
Total contribution margin
39,130
35,600
Fixed costs:
Avoidable
22,000
36,000
Unavoidable
6,000
27,000
Profit
$11,130
$-27,400
The company is considering dropping Product B because of the $27,400 loss. If X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $11,800. If X Company drops Product B and increases sales of A by $11,800, firm profits will change by
The following information is for X Company's two products - A and B: Product A $91,000 39,130 Product B $89,000 35,600 Sales Total contribution margin Fixed costs: Avoidable Unavoidable Profit 22,000 6,000 $11,130 36,000 27,000 $-27,400 The company is considering dropping Product B because of the $27,400 loss. If X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $11,800. If X Company drops Product B and increases sales of A by $11,800, firm profits will change by Submit Answer Tries 0/3
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