Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following information is for x company's two p

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

90.2K

Verified Solution

Question

Accounting

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

Product A Product B
Revenue $87,000 $95,000
Variable Costs 50,460 53,200
Fixed costs $28,250 $52,580
Profit $8,290 $-10,780

$5,085 of Product A's fixed costs are directly related to Product A; $6,310 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 B because of its reported loss

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

A: $-15,085 B: $-20,064 C: $-26,685 D: $-35,490 E: $-47,202 F: $-62,779

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Respiratory Case Histories - Case 13 A 150 lb., 62-year-old man had a chronic productive cough, exertional...

Mechanical Engineering
1.2K views

One integrated circuit design calls for the diffusion of arsenic into silicon wafers; the background concentration...

Basic Math
1.2K views

Some people say if you want to make money after you graduate that you should major...

Physics
1.2K views

For the following lens, locate the image by drawing a ray diagram (3 rays) and...

Basic Math
1.2K views

Sketch an angle 8 in standard position such that 0 has the least possible positive...

Calculus
1.2K views

the area of the region that is trapped between the curves y 4x and y...

Accounting
1.2K views

Lansing, Inc. provides the following Information for one of its department's operations for June (no...

Accounting
1.2K views

Briefly explain why economists prefer to levy taxes on goods that generate negative externalities than...

Accounting
1.2K views

Your (new) best friend won the Mega Ball Lottery Jackpot and has offered to give...

Accounting
1.2K views

Question 7 Not yet answered Marked out of 2.00 In cases where a product is...

Finance
1.2K views

1.25 pts Question 10 Assume that you are offered to receive $300 in first...

Finance
1.2K views

Haier-China can borrow fund in China with an interest rate of 11.28% to invest 1.63...