Solution-What would operating income have been for the

What would operating income have been for the company

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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?

Reference no: EM133093663

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What would operating income have been for the company

Reference no: EM133093663

Reference no: EM133093663

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