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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $87,000 $95,000 Total variable costs 52,200 55,100

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

Product A Product B
Revenue $87,000 $95,000
Total variable costs 52,200 55,100
Total contribution margin $34,800 $39,900
Total fixed costs
Avoidable 28,292 18,243
Unavoidable 23,148 12,677
Profit $-16,640 $8,980

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 $38,400, with $4,600 of additional fixed costs, what will be the effect on firm profits?

A: $4,291 B: $5,020 C: $5,873 D: $6,872 E: $8,040 F: $9,407

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