The following information is for three of X Company's products:

	Product A	Product B	Product C
Contribution margin rate	0.36	0.39	0.43
Fixed costs	$29,002	$30,631	$42,334
Profit	$7,250	$13,127	$-3,848

Sales of Product C were $89,500, but X Company is still considering dropping it because of its reported loss. If it does, $21,167 of the fixed costs associated with it can be avoided, and sales of Product B can be increased by $42,600.

If X Company does drop Product C and increases sales of Product B, X Company's profits will change by _________

Answer rating: 100% (QA)

Contribution margin lost on Product C Sales of Product C Contribution margin rate 89... View the full answer