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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $90,000 $91,000 Total variable costs 47,700 52,780

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

Product A Product B
Revenue $90,000 $91,000
Total variable costs 47,700 52,780
Total contribution margin $42,300 $38,220
Total fixed costs
Avoidable 34,382 17,663
Unavoidable 24,898 15,047
Profit $-16,980 $5,510

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 $26,800, with $3,200 of additional fixed costs, what will be the effect on firm profits?

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