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The following Income Statement is for X Company and its only two products - A and B: Product B Total $179,120 98,295 $80,825 Product A

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The following Income Statement is for X Company and its only two products - A and B: Product B Total $179,120 98,295 $80,825 Product A $93,240 48,485 $44,755 $85,880 49,810 $36,070 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 72,920 34,730 $-26,825 48,180 29,490 $-32,915 24,740 5,240 $6,090 Because Product A is showing a loss, X Company is considering dropping it, and in its place, increase sales of Product B by $16,780. If it drops Product A and increases sales of Product B, X Company's profits will increase by

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