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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $87,000 $95000 Total variable costs 49590 48,450

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

Product A Product B
Revenue $87,000 $95000
Total variable costs 49590 48,450
Total contribution margin $37,410 $46,550
Total fixed costs
Avoidable 13,531 33,138
Unavoidable 11,999 22,092
Profit $11,880 $-8,680

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 $26,200, with $5,000 of additional fixed costs, what will be the effect on firm profits?

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