Question
Twinkie Trivia, Inc. manufactures and sells two products: the 50s Trivia Game and the 60s Trivia Game. Last quarter's operating results for the products
Twinkie Trivia, Inc. manufactures and sells two products: the 50s Trivia Game and the 60s Trivia Game. Last quarter's operating results for the products are as follows: 50s Sales $11,000 Variable costs 4,400 Contribution margin $ 6,600 Fixed costs 2,750 Net income (loss) $ 3,850 60s $6,600 3,000 $3,600 4,200 $ (600) Forty percent of the fixed costs shown for the 60s Trivia Game would have been avoided if the product had not been produced and sold. If the 60s Trivia Game had been discontinued before the beginning of last quarter, net income for Twinkie would have been: AR A. B. $ 600 greater $1,080 greater C. D. $1,920 less $3,600 less
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