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Problem - Sheridan 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
$15,500
$6,610
$22,110
Variable expenses
4,830
2,990
7,820
Contribution margin
10,670
3,620
14,290
Fixed expenses
2,930
4,200
7,130
Operating income
$7,740
$(580)
$7,160
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?
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