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Sunland 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
Sunland 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 $15,300 $6,740 $22,040 Variable expenses 4,940 2,930 7,870 Contribution margin 10,360 3,810 14,170 Fixed expenses 3,000 4,200 7,200 Operating income $7,360 $(390) $6,970 Forty percent of the Round Game's 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 1,220
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