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

		Product A	Product B
Sales		$94,780	$85,250
Total variable costs		53,077	46,035
Total fixed costs		26,680	74,120
Profit		$15,023	$-34,905

Because of the reported loss for Product B, X Company is considering dropping it. Further analysis reveals that $5,370 of Product A's fixed costs and $27,990 of Product B's fixed costs are common costs that the company allocates to the two products.

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

8. Assume that sales of Product A can be increased by $17,210 if Product B is dropped. What will be the effect of this increase on company profits?