Business, 25.11.2019 21:31, jimena15

The following income statement is for x company and its only two products - a and b:

total product a product b
sales $174,760 $85,650 $89,110
variable costs 96,836 51,390 45,446
contribution margin $77,924 $34,260 $43,664
fixed costs:
avoidable 71,970 24,600 47,370
unavoidable 31,500 5,270 26,230
profit $-25,546 $4,390 $-29,936
because product b is showing a loss, x company is considering dropping it and saving its avoidable fixed costs. if it drops product b, x company's new profits will be

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The following income statement is for x company and its only two products - a and b:

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