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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $92,000 $85,000 Total variable costs 51,520 46,750

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

Product A Product B
Revenue $92,000 $85,000
Total variable costs 51,520 46,750
Total contribution margin $40,480 $38,250
Total fixed costs
Avoidable 15,254 32,915
Unavoidable 11,046 23,835
Profit $14,180 $-18,500

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 $31,900, with $4,800 of additional fixed costs, what will be the effect on firm profits?

A: $2,690 B: $3,901 C: $5,656 D: $8,202 E: $11,893 F: $17,244

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