The following information is for X Company's two products - A and B: Revenue Variable Costs...

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The following information is for X Company's two products - A and B: Revenue Variable Costs Fixed costs Profit Product A Product B $92,000 $94,000 51,520 53,580 $31,730 $8,750 $59,710 $-19,290 $6,346 of Product A's fixed costs are directly related to Product A; $6,568 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product B because of its reported loss If it drops Product B, what will be the effect on firm profits? OA: $-21,665 OB: $-27,082 OC: $-33,852 OD: $-42,315 OE: $-52,894 OF: $-66,117 Submit Answer Tries 0/99 The following information is for X Company's two products - A and B: Revenue Variable Costs Fixed costs Profit Product A Product B $92,000 $94,000 51,520 53,580 $31,730 $8,750 $59,710 $-19,290 $6,346 of Product A's fixed costs are directly related to Product A; $6,568 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product B because of its reported loss If it drops Product B, what will be the effect on firm profits? OA: $-21,665 OB: $-27,082 OC: $-33,852 OD: $-42,315 OE: $-52,894 OF: $-66,117 Submit Answer Tries 0/99

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Answer If X Company drops Product B the effect on firm profits can be calculated as follows Curr... View the full answer