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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $94,000 $90,000 Total variable costs 49,820 54,000

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

Product A Product B
Revenue $94,000 $90,000
Total variable costs 49,820 54,000
Total contribution margin $44,180 $36,000
Total fixed costs
Avoidable 34,680 14,862
Unavoidable 24,100 10,328
Profit $-14,600 $10,810

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 $35,000, with $4,000 of additional fixed costs, what will be the effect on firm profits?

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