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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 = .41 (R) - $32,540 Product B: P = .50 (R) - $56,800 where R is revenue. Budgeted revenue for the two products are $89,000 and $94,000, respectively. Unavoidable fixed costs for the two products are $11,389 and $25,560, 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 $34,000, but that will require $2,200 of additional fixed costs. If X Company drops B and increases revenue from A, firm profits will change by OA: $-2,182 B: $-2,466 C: $-2,786| OD: $-3,148 OE: $-3,558 OF: $-4,020 Submit Answer Tries 0/99

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