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  3. the following income statement is for x company's

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

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Accounting

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The following income statement is for X Company's two products, A and B: Product A $85,000 46,750 $38,250 Product B $91,000 50,960 $40,040 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 29,095 29,095 $-19,940 18,388 13,872 $ 7,780 If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $25,600, with $4,600 of additional fixed costs, what will be the effect on firm profits? A: $-2,491 B: $-2,815OC: $-3,181 D: $-3,594 E: $-4,062 F: $-4,590

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