Questions 7 and 8 refer to the following information: 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 $86,250 50,025 61,440 Product B $94,000 52,640 30,530 $-25,215 $10,830 Because of the reported loss for Product A, X Company is considering dropping it. Further analysis reveals that $27,390 of Product A's fixed costs and $6,750 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 Submit Answer Tries 0/5 8. Assume that sales of Product B can be increased by $17,790 if Product A is dropped. What will be the effect of this increase on company profits? Submit Answer Tries 0/5