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6 Magic Realm, Inc. has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per
6 Magic Realm, Inc. has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $170,000 per year, and variable costs are $6 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor. 10 points Required: 1-a. Prepare an income statement for the game last year. eBook Total Per Unit Print Sales References 1-b. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 10 points eBook Print 2. Management believes that the company's sales will increase by 3,000 games next year. Compute the following: References a. The expected percentage increase in net income for next year. (Do not round intermediate calculations.) Expected percentage % b. The expected total collar net income for next year. (Do not prepare an income statement use the degree of operating leverag compute your answer.) (Do not round intermediate calculations.) Total expected net income
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