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  3. the following information is for x company's two p

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 $93,000 $88,000
Variable Costs 55,800 49,280
Fixed costs $25,380 $59,810
Profit $11,820 $-21,090

$3,807 of Product A's fixed costs are directly related to Product A; $5,981 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: $-13,410 B: $-16,762 C: $-20,953 D: $-26,191 E: $-32,739 F: $-40,924

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