The following information is for X Company's two products - A and B:

Product A	Product B
Total contribution margin	$35,600	$39,060
Contribution margin rate	40%	42%
Fixed costs	$56,110	$31,510
Profit	$-20,510	$7,550

10% of Product A's fixed costs are allocated; 10% of Product B's fixed costs are allocated. The unallocated fixed costs are directly related to the individual products.

The company is considering dropping Product A because of the $20,510 loss. If X Company drops A, it will use the freed-up resources to increase sales of Product B by $15,000, but there will be additional fixed costs of $2,400. If X Company drops A, firm profits will change by