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The following information is for X Company's two products - A and B: Product A Product B Revenue $86,000 $94,000 Variable Costs 49,020 56,400 Fixed

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

Product A Product B
Revenue $86,000 $94,000
Variable Costs 49,020 56,400
Fixed costs $52,670 $28,930
Profit $-15,690 $8,670

$5,267 of Product A's fixed costs are directly related to Product A; $3,472 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product A because of its reported loss

If it drops Product A, what will be the effect on firm profits?

A: $-17,213 B: $-19,450 C: $-21,979 D: $-24,836 E: $-28,065 F: $-31,713

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