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 | $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 |
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