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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