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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $94,000 $85,000 Total variable costs 54,520 49,300

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

Product A Product B
Revenue $94,000 $85,000
Total variable costs 54,520 49,300
Total contribution margin $39,480 $35,700
Total fixed costs
Avoidable 28,280 13,904
Unavoidable 27,170 11,376
Profit $-15,970 $10,420

If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $29,700, with $3,600 of additional fixed costs, what will be the effect on firm profits?

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