The following information is for X Company’s two products, A and B:
|Product A||Product B|
|Total variable costs||52,510||49,400|
|Total contribution margin||$36,490||$45,600|
|Total fixed costs Avoidable||14,515||33,559|
1. If X Company drops Product B because it shows a loss, what will be the effect on firm profits?
2. Assume that if X Company drops Product B, it can use the vacant