PLEASE help-- I don\'t understand why my anwers are wrong and I have one try lef
ID: 2575298 • Letter: P
Question
PLEASE help-- I don't understand why my anwers are wrong and I have one try left for both.
The following information is for X Company's two products, A and B, last year: Sales Total variable costs Total fixed costs Profit Product A $92,490 47,170 62,490 Product B $85,320 48,632 28,790 $7,898 $-17,170 Because of the reported loss for Product A, X Company is considering dropping it. Further analysis reveals that $27,940 of Product A's fixed costs and $6,090 of Product B's fixed costs are common costs that the company allocates to the two products 7. If X Company drops Product A, company profits will change by 10770 Submit Answer Incorrect. Tries 4/5 Previous Tries 8. Assume that sales of Product B can be increased by $14,540 if Product A is dropped. What will be the effect of this increase on company profits? 4518 Submit Answer Incorrect. Tries 4/5 Previous TriesExplanation / Answer
Change in profit is $9,272-$20,042= -$10,770
8. Company profit will increase by -$4,518.
Comment: Your value written over the answer column is true except the negative sign. You should provide negative sign while writting the answer.
Company profit will change from -$9,272 to -$20,042. 7. Company profit will change by -$10,770Related Questions
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