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The following information is for X Company's two products, A and B: Product A Product B Revenue $91,000 $90,000 Total contribution margin 36,400 43,200 Total

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

Product A Product B
Revenue $91,000 $90,000
Total contribution margin 36,400 43,200
Total fixed costs 32,040 55,970
Profit $4,360 $-12,770

$17,622 of Product A's fixed costs are avoidable; $33,022 of Product B's fixed costs are avoidable. X Company plans to drop Product B since it shows a loss and increase sales of Product A by $37,700. Accompanying the sales increase will be a fixed costs increase of $4,600. If X Company drops Product B and increases Product A sales, what will be the effect on firm profits?

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