If the Round Game had been discontinued before the last quarter, what would operating income have been for the company as a whole? Operating income without round $__________ Twinkie Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarter’s operating profits, by product, and for the company as a whole, were as follows: Square Round Total Sales revenue $11,000 $6,600 $17,600 Variable expenses 4,400 3,000 7,400 Contribution margin 6,600 3,600 10,200 Fixed expenses 2,750 4,200 6,950 Operating income $ 3,850 $(600) $ 3,250

Advanced Engineering Mathematics
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If the Round Game had been discontinued before the last quarter, what would operating income have been for the company as a whole?

Operating income without round
$__________
 
Twinkie Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarter’s operating profits, by product, and for the company as a whole, were as follows:

   
Square
 
Round
   
Total
 
Sales revenue
  $11,000   $6,600      $17,600  
Variable expenses
  4,400   3,000      7,400  
Contribution margin
  6,600   3,600      10,200  
Fixed expenses
  2,750   4,200 

 

  6,950  
Operating income
  $ 3,850   $(600)     $ 3,250  

Forty percent of the Round Game’s fixed costs could have been avoided if the game had not been produced or sold
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