The following information is for X Company's two products, A and B, last year:

		Product A	Product B
Sales		$87,220	$92,900
Total variable costs		52,332	53,882
Total fixed costs		72,150	27,120
Profit		$-37,262	$11,898

Because of the reported loss for Product A, X Company is considering dropping it. Further analysis reveals that $26,760 of Product A's fixed costs and $6,860 of Product B's fixed costs are common costs that the company allocates to the two products.

7. If X Company drops Product A, company profits will change by ?

8. Assume that sales of Product B can be increased by $17,880 if Product A is dropped. What will be the effect of this increase on company profits?