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The following income statement is for X Company's two products, A and B: Revenue Product A $85,000 45,900 $39,100 Product B $88,000 51,920 $36,080 Total

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The following income statement is for X Company's two products, A and B: Revenue Product A $85,000 45,900 $39,100 Product B $88,000 51,920 $36,080 Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 29,400 29,400 $-19,700 19,620 13,080 $3,380 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 $28,300, with $3,000 of additional fixed costs, what will be the effect on firm profits? 6827

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