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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 52,440 44,200

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 52,440 44,200
Total contribution margin $39,560 $40,800
Total fixed costs
Avoidable 15,855 29,193
Unavoidable 15,855 26,947
Profit $7,850 $-15,340

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 $38,600, with $4,200 of additional fixed costs, what will be the effect on firm profits?

A: $791 B: $1,147 C: $1,663 D: $2,411 E: $3,496 F: $5,069

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