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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $88,000 $89,000 Total variable costs 51,920 52,510

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

Product A Product B
Revenue $88,000 $89,000
Total variable costs 51,920 52,510
Total contribution margin $36,080 $36,490
Total fixed costs
Avoidable 29,468 17,535
Unavoidable 25,102 12,185
Profit $-18,490 $6,770

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 $33,500, with $4,600 of additional fixed costs, what will be the effect on firm profits?

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