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Question - Sunland 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
$15,300
$6,670
$21,970
Variable expenses
4,810
2,990
7,800
Contribution margin
10,490
3,680
14,170
Fixed expenses
2,800
4,200
7,000
Operating income
$7,690
$(520)
$7,170
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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