Twinkie Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia
Fantastic news! We've Found the answer you've been seeking!
Question:
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
Sales Rev $40,000 $25,000
Variable expenses $15,000 $20,000
Contrib. Margin $25,000 $5,000
Fixed Expenes $6,400 $6,200
Operating Income $18,600 $(1,200)
Twentypercent 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?
Posted Date: