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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 $88,000 Total variable costs 47,840 50,160

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

Product A Product B
Revenue $92,000 $88,000
Total variable costs 47,840 50,160
Total contribution margin $44,160 $37,840
Total fixed costs
Avoidable 31,453 13,759
Unavoidable 22,777 10,811
Profit $-10,070 $13,270

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 $37,400, with $3,800 of additional fixed costs, what will be the effect on firm profits?

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