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all 4 questions Magic Realin, Inc has developed a new fantasy board game. The comparny sold 14,000 games last year at a selling price of

all 4 questions

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Magic Realin, Inc has developed a new fantasy board game. The comparny sold 14,000 games last year at a selling price of $21 per game. Fired costs assoclated with the game total $182,000 per year, and variable costs are $6 per game. Production of the game is entrusted to a printing contractor Varlable costs consist mostly of payments to this contractor Required: 1-a. Prepare an income statement for the game last year: 1.b. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) 2. Management believes that the company's sales will increase by 3,080 games next year. Compute the following: a. The expected percentage increase in net income for next year, (Do not round Intermedlate calculations. Round your answers to the nearest whole percentoge.) b. The expected total dollar net income for nesy year: (Do not prepare an income statement; use the degree of operating leverage to compute your answer) (Do not round Intermedlate calculations.)

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