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given for this question***X Company no longer has the space necessary to produce all of its parts. A company has offered to supply one of X Company's parts for $27.69 per unit. This year, production was 11,500 units; next year, production is expected to be 15,250 units. Total production costs for the part this year were:

The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .53 (R) - $59,330 Product B: P = .44 (R) - $30,190 where R is revenue. Budgeted revenue for the two products are $87,000 and $95,000, respectively. Avoidable fixed costs for the two products are $37,378 and $16,906, respectively. The company is considering dropping Product A because it appears to be losing money. If it does, the resulting freed-up resources can be used to increase revenue from sales of Product B by $34,500, but that will require $2,800 of additional fixed costs. If X Company drops A and increases revenue from B, firm profits will change by