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

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Accounting

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

Product A Product B
Revenue $92,000 $95,000
Variable Costs 50,600 57,000
Fixed costs $53,400 $27,360
Profit $-12,000 $10,640

$5,874 of Product A's fixed costs are directly related to Product A; $4,651 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product A because of its reported loss

If it drops Product A, what will be the effect on firm profits?

A: $-24,621 B: $-27,822 C: $-31,439 D: $-35,526 E: $-40,144 F: $-45,363

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