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Exercise 5-15 (Algo) Operating Leverage [LO5-1, LO5-8] Magic Healm, incorporsted. has beveloped a new Ssitasy board game. The conpany sold 17.000 games iset year at

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Exercise 5-15 (Algo) Operating Leverage [LO5-1, LO5-8] Magic Healm, incorporsted. has beveloped a new Ssitasy board game. The conpany sold 17.000 games iset year at a seang pnce of 366 per game. Fred expenses assoctsted wath the game 10ta15264.000 per yeat, and votlable expences are 546 per game Progucton of the gome is entrusted to a printing contractor. Varisble expenses consist mosey of payments to this cootractice Requirec: 1-a Pressre o contribuion format income stotenent for the game last year. Ib. Comoute the degree of operating levelage 2 Management is confidens that the company can cel 21.824 games nex year fan increase of 4.224 games, or 24 s, over last yean Glven thin ossumotion e. What is the expected petcentage inciease in net operoting income for next year? b. What is the expected smount of net opecaung income for next year? 1Do not preptre an income slotemenc use the degree of opersting leversge to conpute your answerd Complete this question by entering vour answers in the tabs below. Frobsre a contrbution fsemat eogrne statement fer the otme last ves

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