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	43,350
Total contribution margin			$39,130	$41,650
Total fixed costs
Avoidable			18,058	33,090
Unavoidable			13,622	22,060
Profit			$7,450	$-13,500

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 $26,700, with $5,000 of additional fixed costs, what will be the effect on firm profits?

Will rate!!! (incorrect previous answers were: $2,079 and 12,989