The following information is for X Company’s two products, A and B:
|Product A||Product B|
|Total variable costs||52,440||53,580|
|Total contribution margin||$39,560||$40,420|
|Total fixed costs|
- If X Company drops Product B because it shows a loss, what will be the effect on firm profits?
- Assume that if X Company drops Product B, it can use the vacant space to increase sales