Ivanhoe 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: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Square $12,800 4,980 7,820 2,810 Round $6,670 2,930 3,740 Operating income without round $ 4,200 $5,010 $(460) Total $19,470 7,910 11,560 7,010 $4,550 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?
Ivanhoe 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: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income Square $12,800 4,980 7,820 2,810 Round $6,670 2,930 3,740 Operating income without round $ 4,200 $5,010 $(460) Total $19,470 7,910 11,560 7,010 $4,550 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Ivanhoe 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:
Sales revenue
Variable expenses
Contribution margin
Fixed expenses
Operating income
Square
$12,800
$6,670
4,980 2,930
3,740
2,810 4,200
$5,010 $(460)
7,820
Round
Operating income without round $
Total
$19,470
7,910
11,560
7,010
$4,550
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40a24e60-2cb5-4924-9aab-fcf42b24cb17%2F1a18de6f-e9a9-4908-a41c-eaceba2cde29%2Fnxbe65i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ivanhoe 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:
Sales revenue
Variable expenses
Contribution margin
Fixed expenses
Operating income
Square
$12,800
$6,670
4,980 2,930
3,740
2,810 4,200
$5,010 $(460)
7,820
Round
Operating income without round $
Total
$19,470
7,910
11,560
7,010
$4,550
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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