What would operating income have been for the company

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Question - Wildhorse 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

13,100

6,660

19,760

Variable Expenses

4,610

2,970

7,580

Contribution Margin

8,490

3,690

12,180

Fixed Expenses

2,890

4,200

7,090

Operating Income

5,600

(510)

5,090

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?

Reference no: EM133015566

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