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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $88,000 $87,000 Total variable costs 51,040 51,330

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

Product A Product B
Revenue $88,000 $87,000
Total variable costs 51,040 51,330
Total contribution margin $36,960 $35,670
Total fixed costs
Avoidable 16,266 28,463
Unavoidable 14,424 24,247
Profit $6,270 $-17,040

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 $32,400, with $3,400 of additional fixed costs, what will be the effect on firm profits?

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