Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following information is for x company's two p

The following information is for X Company's two products, A and B: ...

50.1K

Verified Solution

Question

Accounting

The following information is for X Company's two products, A and B:

Product A Product B
Revenue $87,000 $87,000
Total contribution margin 35,670 40,890
Total fixed costs 32,080 50,320
Profit $3,590 $-9,430

$18,286 of Product A's fixed costs are avoidable; $28,682 of Product B's fixed costs are avoidable. X Company plans to drop Product B since it shows a loss and increase sales of Product A by $36,800. Accompanying the sales increase will be a fixed cost increase of $3,600. If X Company drops Product B and increases Product A sales, what will be the effect on firm profits?

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Q

Discuss the problem of IPv4 Address exhaustion and the measures that were taken to mitigate that...

Electrical Engineering
Q

Select one a De Cycles of Matter and Energy Transfer in Ecosystems Question 8 In...

Biology
Q

D Which letter choice did Democrats call for the admission of a slave state in...

Biology
Q

8 perpendicular to the line y 2x 3

Geometry
Q

In a piano recital, Toby has to perform one piece from each era of western...

Basic Math
Q

Dawson wants to pay a 500 credit note that is due in 1 year His...

Algebra
Q

6 Solve for x Lesson 1 06 1 6x 10 8 or 3x 6 12

Algebra
Q

answer all pls ...

Accounting
Q

George operates a business that generated revenues of $59 million and allocable taxable income of...

Accounting
Q

21) Una empresa tiene que deshacerse de los productos de desecho biopeligrosos. Tirarlos en el...

Accounting
Q

Please show work, thank you.

Accounting
Q

Assume that you deposit $9,099 each year for the next 15 years into an account...

Accounting