Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sheridan Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last quarters operating profits, by product, and

Sheridan 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 $15,600 $6,910 $22,510
Variable expenses 4,430 2,920 7,350
Contribution margin 11,170 3,990 15,160
Fixed expenses 2,760 4,200

6,960
Operating income $ 8,410 $(210 ) $ 8,200

Forty percent of the Round Games fixed costs could have been avoided if the game had not been produced or sold. 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 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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_2

Step: 3

blur-text-image_3

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

Auditing a business risk appraoch

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

6th Edition

9780324645095, 324645090, 978-0324375589

More Books

Students also viewed these Accounting questions

Question

Outline the reasons why a business may wish to adopt e-commerce.

Answered: 1 week ago

Question

describe general properties of the sampling distribution of x.

Answered: 1 week ago

Question

6. Explain what causes unsafe acts.

Answered: 1 week ago