The following information is for X Company's two products - A and B: Product A...
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The following information is for X Company's two products - A and B: Product A Product B Sales $87,000 $94,000 Total contribution margin 34,800 37,600 Fixed costs: Avoidable 20,000 27,500 Unavoidable 8,000 30,000 Profit $6,800 $-19,900 The company is considering dropping Product B because of the $19,900 loss. If X Company drops Product B, it will use the freed-up resources to increase sales of Product A by $19,000. If X Company drops Product B and increases sales of A, firm profits will change by
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