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

Particulars Product A Product B

Revenue $91,000 $95,000

Variable Costs $54,000 $55,100

Total Contribution Margin $36,400 $39,000

Fixed Costs $27,590 $50,360

Profit $8,810 $-10,460

$3,587 of Product A's fixed costs are common costs that are allocated to Product A; $10,072 of Product B's fixed costs are common and allocated to Product B. The remaining fixed costs are directly related to A and B.

1. If X Company drops Product B and does nothing with the freed-up resources, profits will change by _________?

2. Assume that if X Company drops Product B, it can use the freed-up resources to increase sales of Product A by $16,700, but there will be additional fixed costs of $2,200. As a result, X Company's profits will increase by __________?

(Please answer step by step).