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

Product A Product B

Revenue $93,000 $89,000

Total variable costs 53,940 49,840

Total contribution margin $39,060 $39,160

Total fixed costs

Avoidable 18,325 26,724

Unavoidable 12,735 25,676

Profit $8,000 $-13,240

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 $38,800, with $3,000 of additional fixed costs, what will be the effect on firm profits?

A: $860 B: $972 C: $1,098 D: $1,241 E: $1,402 F: $1,584