Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8.17 (LO 5) Keeping or eliminating operations Twinkie Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game.

8.17 (LO 5) Keeping or eliminating operations Twinkie Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarters 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 Games fixed costs could have been avoided if the game had not been produced or sold.

Required

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To determine the operating income if the Round Trivia Game had been discontinued lets follow these s... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

12th edition

133451860, 978-0133451863

More Books

Students also viewed these Accounting questions