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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 $89,000 Total variable costs 53,360 47,170

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

Product A Product B
Revenue $92,000 $89,000
Total variable costs 53,360 47,170
Total contribution margin $38,640 $41,830
Total fixed costs
Avoidable 16,611 29,519
Unavoidable 12,029 24,151
Profit $10,000 $-11,840

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 $31,200, with $4,400 of additional fixed costs, what will be the effect on firm profits?

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