I even tried 9899.63 and rounded it 9900 and still receiving incorrect answers.
ID: 2574794 • Letter: I
Question
I even tried 9899.63 and rounded it 9900 and still receiving incorrect answers.
The following information is for X Company's two products, A and B, last year: Sales Total variable costs Total fixed costs Product A $93,020 52,091 30,370 $10,559 Product B $89,040 48,082 72,670 $-31,712 Because of the reported loss for Product B, X Company is considering dropping it. Further analysis reveals that $7,720 of Product A's fixed costs and $28,430 of Product B's fixed costs are common costs that the company allocates to the two products. 7. If X Company drops Product B, company profits will change by $3,282 You are correct. PreviousT Your receipt no. is 152-5405 8. Assume that sales of Product A can be increased by $15,040 if Product B is dropped. What will be the effect of this increase on company profits? 9899.6 Submit Answer Incorrect. Tries 4/5 Previous TriesExplanation / Answer
Even my answer is coming the same as
Contribution ratio = (93020-52091)/93020=44%
Increase in Contribution = 15040 * 44% = 6617.60
Saving due to removal of Division B = $3282
Total Increase = 6617.60+3282 = 9899.60 $
So it might be possible there system is showing as error.
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