Use of the vacant space, The following information is for X

Use of the vacant space

Reference no: EM131067307

The following information is for X Company's two products, A and B: Product A Product B Revenue $93,000 $95,000 Total variable costs 55,800 57,000 Total contribution margin $37,200 $38,000 Total fixed costs Avoidable 14,550 28,269 Unavoidable 14,550 24,081 Profit $8,100 $-14,350 7. If X Company drops Product B because it shows a loss, what will be the effect on firm profits? 8. Assume that if X Company drops Product B, it can use the vacant space to increase sales of Product A by $36,100, but $4,600 of additional fixed costs will be incurred. This use of the vacant space will result in an increase in X Company's profits of

Reference no: EM131067307

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