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The following information is for X Company's two products, A and B, last year: Product A Product B Sales $ 93,960 $ 89,110 Total variable

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

Product A Product B
Sales $ 93,960 $ 89,110
Total variable cost 55,436 48,119
Total fixed costs 32,000 69,760
Profit $ 6,524 $-28769

Because of the reported loss for Product B, X Company is considering dropping it. Further analysis reveals that $7,880 of Product A's fixed costs and $28,440 of Product B's fixed costs are common costs that the company allocates to the two products.

1. If X Company drops Product B, company profits will change by______?

2. Assume that sales of Product A can be increased by $15,410 if Product B is dropped. What will be the effect of this increase on company profits?

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