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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $91,000 $85,000 Total variable costs 54,600 46,750

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

Product A Product B
Revenue $91,000 $85,000
Total variable costs 54,600 46,750
Total contribution margin $36,400 $38,250
Total fixed costs
Avoidable 13,500 32,822
Unavoidable 13,500 22,808
Profit $9,400 $-17,380

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 $29,800, with $4,000 of additional fixed costs, what will be the effect on firm profits?

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