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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
Revenue $89,000 $95,000
Variable Costs 49,840 56,050
Fixed costs $50,010 $29,240
Profit $-10,850 $9,710

$10,002 of Product A's fixed costs are directly related to Product A; $4,678 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: $-25,804 B: $-29,158 C: $-32,949 D: $-37,232 E: $-42,072 F: $-47,541

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