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The following income statement is for X Company's two products, A and B: Product A $85,000 45,050 $39,950 Product B $95,000 57,000 $38,000 Revenue Total

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The following income statement is for X Company's two products, A and B: Product A $85,000 45,050 $39,950 Product B $95,000 57,000 $38,000 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 28,418 26,232 $-14,700 17,681 13,339 $6,980 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 $28,200, with $4,600 of additional fixed costs, what will be the effect on firm profits? Tries 0/3

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