**Blossom Trivia Co. Operating Profits Overview**Blossom Trivia Co. manufactures and sells two trivia products: the Square Trivia Game and the Round Trivia Game. Last quarter’s operating profits, categorized by product and as a total for the company, are displayed in the table below:| | Square | Round | Total ||--------------------------|--------|--------|--------|| **Sales Revenue** | $11,000| $6,600 | $17,600|| **Variable Expenses** | 4,400 | 2,900 | 7,300 || **Contribution Margin** | 6,600 | 3,700 | 10,300 || **Fixed Expenses** | 2,750 | 4,200 | 6,950 || **Operating Income** | $3,850 | $(500) | $3,350 |**Key Insights:**- **Contribution Margin**: Calculated as Sales Revenue minus Variable Expenses, it shows how much money is contributed toward covering fixed expenses.- **Operating Income**: This is the income after both variable and fixed expenses are subtracted from sales revenue.**Additional Context:**- Forty percent of the Round Game’s fixed costs could have been avoided if the game had not been produced or sold.**Analysis Challenge:**- Determine the company's operating income if the Round Game had been discontinued. Consider the avoidable fixed costs to calculate a revised operating income excluding the Round Game.**Calculation Task:**Fill in the operating income without the Round Game:- **Operating income without Round**: $ _______

Unavoidable fixed costs for Round = $4,200 x 60% = $2,520

Answered: Blossom Trivia Co. manufactures and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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