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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $93,000 $91,000 Total variable costs 55,800 53,690

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

Product A Product B
Revenue $93,000 $91,000
Total variable costs 55,800 53,690
Total contribution margin $37,200 $37,310
Total fixed costs
Avoidable 16,770 29,172
Unavoidable 11,180 26,928
Profit $9,250 $-18,790

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 $26,700, with $4,600 of additional fixed costs, what will be the effect on firm profits?

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