What would operating income have been for the company

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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?

Reference no: EM133040009

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