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  3. 98. the following information is for x company's t

98. The following information is for X Company's two products - A and B: ...

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Question

Accounting

98.

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

Product A Product B
Revenue $95,000 $92,000
Variable Costs 56,050 55,200
Fixed costs $53,050 $32,830
Profit $-14,100 $3,970

$10,610 of Product A's fixed costs are directly related to Product A; $5,581 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product A because of its reported loss

If it drops Product A, what will be the effect on firm profits?

A: $-14,510 B: $-18,138 C: $-22,672 D: $-28,340 E: $-35,425 F: $-44,281

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