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

Product A: P = .42 (R) - $25,720

Product B: P = .52 (R) - $59,750

where R is revenue. Budgeted revenue for the two products are $95,000 and $89,000, respectively. Avoidable fixed costs for the two products are $15,432 and $35,252, respectively. The company is considering dropping Product B 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 A by $36,900, but that will require $2,800 of additional fixed costs. If X Company drops B and increases revenue from A, firm profits will change by