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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 = .40 (R) - $32,550 Product B: P=.51 (R) - $57,390 where R is revenue. Budgeted revenue for the two products are $94,000 and $92,000, respectively. Unavoidable fixed costs for the two products are $12,044 and $25,826, respectively. The company is considering dropping Product 8 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 $34,100, but that will require $2,600 of additional fixed costs. If X Company drops Band increases revenue from A, firm profits will change by 9.45 r. 4.5 l. 4.7634 F..10 153 F. 4.1353

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