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			51,870	51,000
Total contribution margin			$39,130	$34,000
Total fixed costs
Avoidable			31,587	17,249
Unavoidable			25,843	12,491
Profit			$-18,300	$4,260

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 $29,500, with $3,000 of additional fixed costs, what will be the effect on firm profits?

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