answer the required
Return to question Magic Realm, Inc., has developed a new fantasy board game. The company sold 41,000 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $738,000 per year, and variable expenses are $41 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor Required: 1-a. Prepare a contribution format income statement for the game last year 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can se" 50,840 games next year (an increase of 9,840 games, or 24%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement, use the degree of operating leverage to compute your answer) 3 Answer is not complete Complete this question by entering your answers in the tabs below. Req 2 Req 1A Req 1B Prepare a contribution format income statement for the game last ye Magic Realm, Inc. Contribution Income Statement Per Total 610 |s 2,50 1,000 ols Sales Prev 1017 Next > Return to question Exercise 6-15 Operating Leverage [LO6-1, LO6-8 Magic Realm, Inc., has developed a new fantasy board game. The company sold 41,000 games last year at a seling price of $61 per game. Fixed expenses associated with the game total $738,000 per year, and variable expenses are $41 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Given this assumption a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement use the degree of operating leverage to compute your answer) nt is confident that the company can sell 50,840 games next year (an increase of 9,840 games, or 24%, over last year). 3 Answer is not complete. Complete this question by entering your answers in the tabs below Req 2 Req 1A Req 1B Compute the degree of operating leverage 820,000 Prev 1017 Next > 1-a. Prepare a contribution format income statement for the game last year the degree of operating leverage 2. M Given this assumption a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer) is confident that the company can sell 50,840 games next year (an increase of 9,840 games, or 24%, over last year). 85 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2 Req 1A Req 18 ent is confident that the company can sell so,840 games next year (an increase of 9,840 games, or 24%, over last year). Given this ass a. What is the expected percentage increase in net operating income for next year? s the expected amount of net operating income for next year? (Do not prepare an income statement of operating leverage to compute your answer.) of 7 Next > Prev 1 Dw 20 8
