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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $86,000 $95,000 Total variable costs 51,600 55,100

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

Product A Product B
Revenue $86,000 $95,000
Total variable costs 51,600 55,100
Total contribution margin $34,400 $39,900
Total fixed costs
Avoidable 13,182 30,206
Unavoidable 12,168 21,874
Profit $9,050 $-12,180

If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $31,500, with $4,000 of additional fixed costs, what will be the effect on firm profits?

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