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The following information is for X Company's two products - A and B: Product A Product B Revenue $86,000 $93,000 Variable Costs 51,600 53,010 Fixed

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

Product A Product B
Revenue $86,000 $93,000
Variable Costs 51,600 53,010
Fixed costs $51,060 $31,970
Profit $-16,660 $8,020

$5,617 of Product A's fixed costs are directly related to Product A; $6,394 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: $-9,199 B: $-12,235 C: $-16,272 D: $-21,642 E: $-28,783 F: $-38,282

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