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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $92,000 $92,000 Total variable costs 49,680 51,520

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

Product A Product B
Revenue $92,000 $92,000
Total variable costs 49,680 51,520
Total contribution margin $42,320 $40,480
Total fixed costs
Avoidable 32,515 17,795
Unavoidable 23,545 13,425
Profit $-13,740 $9,260

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 $26,400, with $3,400 of additional fixed costs, what will be the effect on firm profits?

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