Sandhill Trivia Co. manufactures and sells two trivia products, the Square Trivia Game and the Round Trivia Game. Last q
Posted: Sun Apr 17, 2022 7:02 pm
Sandhill 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
Variable expenses
Contribution margin
Fixed expenses
Operating income
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?
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
Variable expenses
Contribution margin
Fixed expenses
Operating income
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?