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
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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ISBN:9780470458365
Author:Erwin Kreyszig
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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:
Forty percent of the Round Game’s fixed costs could have been avoided if the game had not been produced or sold
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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