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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $95,000 $86,000 Total variable costs 56,050 43,860

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

Product A Product B
Revenue $95,000 $86,000
Total variable costs 56,050 43,860
Total contribution margin $38,950 $42,140
Total fixed costs
Avoidable 17,926 30,173
Unavoidable 14,084 23,707
Profit $6,940 $-11,740

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 $33,700, with $3,400 of additional fixed costs, what will be the effect on firm profits?

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