Exercise D8-17 Twinkie Trivia Co. manufactures and sells two trivia products, th

Question

Exercise D8-17 Twinkie 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 $11,000 $6,600 $17,600 Sales revenue Variable expenses Contribution margin 6,600 3,600 10,200 Fixed expenses Operating income 3,850 $(600) 3,250 4,400 3,000 7,400 2,750 4,2006,950 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? Operating income without rounds Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Calculate operating income without round :

Operating income without round ($1330).

Operating income of square 3850 Operating income of round if discontinue (4200*60%) (2520) Operating income of whole company without round 1330

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.