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Question - Crane 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
$12,800
$6,800
$19,600
Variable expenses
4,880
2,930
7,810
Contribution margin
7,920
3,870
11,790
Fixed expenses
2,960
4,200
7,160
Operating income
$4,960
$(330)
$4,630
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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