The following information is for X Company's two products - A and B: ...
90.2K
Verified Solution
Link Copied!
Question
Accounting
The following information is for X Company's two products - A and B:
| Product A | Product B | |
| Sales | $91,000 | $89,000 |
| Total contribution margin | 39,130 | 35,600 |
| Fixed costs: | ||
| Avoidable | 22,000 | 36,000 |
| Unavoidable | 6,000 | 27,000 |
| Profit | $11,130 | $-27,400 |
The company is considering dropping Product B because of the $27,400 loss. If X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $11,800. If X Company drops Product B and increases sales of A by $11,800, firm profits will change by
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.