The following are the budgeted profit functions for X Company's two products, A and B, for next year:

Product A: P = .52 (R) - $55,730

Product B: P = .42 (R) - $28,580

where R is revenue. Budgeted revenue for the two products are $89,000 and $87,000, respectively. Avoidable fixed costs for the two products are $36,224 and $15,719, respectively.

The company is considering dropping Product A because it appears to be losing money. If it does, the resulting freed-up resources can be used to increase revenue from sales of Product B by $37,700, but that will require $2,400 of additional fixed costs.

If X Company drops A and increases revenue from B, firm profits will change by

A: $812

B: $1,080

C: $1,436

D: $1,910

E: $2,540

F: $3,378