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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $95,000 $95,000 Total variable costs 52,250 56,050

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

Product A Product B
Revenue $95,000 $95,000
Total variable costs 52,250 56,050
Total contribution margin $42,750 $38,950
Total fixed costs
Avoidable 27,173 17,252
Unavoidable 26,107 11,988
Profit $-10,530 $9,710

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 $37,100, with $3,200 of additional fixed costs, what will be the effect on firm profits?

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