(Solved):The following information is for X Company’s two products, A and B: If X Company drops Product B…

 

Question

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

Product A Product B
Revenue $89,000 $92,000
Total variable costs 53,400 48,760
Total contribution margin $35,600 $43,240
Total fixed costs
Avoidable 15,475 28,661
Unavoidable 14,285 23,449
Profit $5,840 $-8,870

If X Company drops Product B because it shows a loss, what will

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