Reference no: EM132614583

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                            Total

Sales revenue               $ 40,000            $ 18,000                  $ 58,000

Variable expenses            $ 10,000              $ 12,000              $ 22,000

Contribution margin              $ 30,000            $ 6,000             $ 36,000

Fixed expenses                     $ 4,500                $ 6,200            $ 10,700

Operating income                     $ 25,500               $ (200)         $ 25,300

Question 1: 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?