Chapter 5-Homework 6 171 pom Int Help Check my work Exercise 5-15 (Algo) Operating Leverage [LOS-1, LO5-8) Magic Ream, Incorporated, has developed a new fantasy board game. The company sold 48.000 games lost year at a selling price of $60 per game. Fixed expenses associated with the game total $880,000 per year, and variable expenses are $40 per game Production of the game is entrusted to a printing contractor Variable expenses consist mostly of payments to this contractor Required: 1a Prepare a contribution format income statement for the game last year. 16 Compute the degree of operating leverage 2. Management is confident that the company can sell 60.480 games next year (an increase of 12.400 games, or 20%, over last year) Given this assumption & 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) Complete this question by entering your answers in the tabs below. Reg IA Reg 18 Ro2 Compute the degree of sperating leverage Reg) Mc Gram Reg 14 Submit Save & Ex Poland Spring