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

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

Product A Product B
Revenue $94,000    $92,000   
Total contribution margin 42,300    40,480   
Total fixed costs 52,040    28,040   
Profit $-9,740    $12,440   


$29,142 of Product A's fixed costs are avoidable; $14,020 of Product B's fixed costs are avoidable. X Company plans to drop Product A since it shows a loss and increase sales of Product B by $37,200. Accompanying the sales increase will be a fixed cost increase of $4,400. If X Company drops Product A and increases Product B sales, what will be the effect on firm profits?

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