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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

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

$ 35,000

$ 19,000

$ 54,000

Variable expenses

$ 15,000

$ 15,000

$ 30,000

Contribution margin

$ 20,000

$ 4,000

$ 24,000

Fixed expenses

$ 6,000

D1

$ 6,000

D2

$ 12,000

D3

Operating income

$ 14,000

$ (2,000)

$ 12,000

25% - Twenty-five 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?

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