The following information is for X Company's two products - A and B: Product A...
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Accounting
The following information is for X Company's two products - A and B: Product A Product B Revenue $88,000 $93,000 Variable Costs 44,880 55,800 Fixed costs $58,860 $32,750 Profit $-15,740 $4,450 $5,886 of Product A's fixed costs are directly related to Product A; $4,258 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: $-37,234 B: $-46,542 C: $-58,178 D: $-72,723 E: $-90,903 F: $-113,629 Answer Submitted: Your final submission will be graded after the due date. Tries 3/99 Previous Tries
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