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Check my wc 1 Exercise 6-15 Operating Leverage (LO6-1, LO6-8] 85 Dints Magic Realm, Inc., has developed a new fantasy board game. The company sold
Check my wc 1 Exercise 6-15 Operating Leverage (LO6-1, LO6-8] 85 Dints Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,200 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $82,000 per year, and variable expenses are $45 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. eBook Print References 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 sell 10,086 games next year (an increase of 1,886 games, or 23%, 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.) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc. Contribution Income Statement uruyorucusu II 1 Complete this question by entering your answers in the tabs below. 2.85 points Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year. eBook Print Magic Realm, Inc. Contribution Income Statement References Total Per Unit 0 $ 0 0 Check 2. Ividildyement is Concent lidt une company Call Sen 10,VOO yames next yedi (du increase oi 1,000 yames, OI 237, over last yedi). 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.) 2.85 points Complete this question by entering your answers in the tabs below. eBook Print Req 1A Req 1B Req 2 References Compute the degree of operating leverage. Degree of operating leverage Chapter 6: Homework i Saved Help Save & Exit Check my Muying urucusu uri. Complete this question by entering your answers in the tabs below. 2.85 points Req 1A Req 1B Req 2 eBook Management is confident that the company can sell 10,086 games next year (an increase of 1,886 games, or 23%, 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.) Print References Show less A % a. Net operating income increases by b. Total expected net operating income
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