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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $93,000 $91,000 Total variable costs 53,940 50,050

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

Product A Product B
Revenue $93,000 $91,000
Total variable costs 53,940 50,050
Total contribution margin $39,060 $40,950
Total fixed costs
Avoidable 17,429 29,104
Unavoidable 12,621 21,076
Profit $9,010 $-9,230

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 $38,700, with $3,800 of additional fixed costs, what will be the effect on firm profits?

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