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#6 The following income statement is for X Company's two products, A and B: Product A Product B Revenue $89,000 $95,000 Total variable costs 47,170

#6 The following income statement is for X Company's two products, A and B:

Product A Product B
Revenue $89,000 $95,000
Total variable costs 47,170 54,150
Total contribution margin $41,830 $40,850
Total fixed costs
Avoidable 28,830 15,837
Unavoidable 28,830 12,443
Profit $-15,830 $12,570

If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $24,000, with $4,200 of additional fixed costs, what will be the effect on firm profits?

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