9. Twinkle Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and...
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9. Twinkle 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 $ 35,000 $ 19,000 $ 54,000 Variable expenses S 15.000 15.000 $ 30.000 Contribution margin $ 20,000 $ 4,000 $ 24,000 Fixed expenses $ 6,000 $ 6,000 $ 12.000 Operating income $ 14,000 S (2.000) $ 12,000 1 Twenty-five 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? company is currently
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