Total
Sales
$183,490
8 pt The following income statement is for X Company and its only two products A and B:
Product A
Product B
$93,930
$89,560
Variable Costs
100,832
51,049
49,783
Contribution margin
$82,658
$38,511
$44,147
Fixed costs:
Avoidable
61,820
23,610
38,210
Unavoidable
31,330
6,080
25,250
Profit
$-10,492
$8,821
$-19,313
Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it
roduct B, X Company's new profits will be
AO $-8,767
BO $-10,258
CO $-12,002
DO $-14,042
EO $-16,429
FO $-19,222