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gic Realm, Inc, has developed a new fantasy board game. The company sold 16,400 games last year at a selling price of $69 per game.
gic Realm, Inc, has developed a new fantasy board game. The company sold 16,400 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $246,000 per year, and variable expenses are $49 per game. Production of the Mag 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 sell 20,336 Given this assumption: a. What is the expected percentage increase in net operating income for next year? games next year (an increase of 3,936 games, or 24%, over last year). at 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 Rea 18 Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc., Contribution Income Statement Total Per Unit Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year. ok Magic Realm, Inc. Contribution Income Statement Total Per Unit Ch 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 com Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the operating leverage to compute your answer) pany can sell 20,336 games next year (an increase of 3,936 games, or 24%, over last ye expected amount of net operating income for next year? (Do not prepare an income statement use the degree of its eBook Print eferences Complete this question by entering your answers in the tabs below Req 1A Req 18 Req 2 Compute the degree of operating leverage. of Req 1A Req 2 > 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 20,336 games next year (an increase of 3,936 games, or 24%, over last 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 o operating leverage to compute your answer.) ok Complete this question by entering your answers in the tabs below. nt nces Req 1A Req 18 Re2 Management is confident that the company can sell 20,336 games next year (an increase of 3,936 games, or 24%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b, Wheat is the expected amount of e for next year? (oo not prepare an income statement; use the degree of operating leverage to compute your answer.) Show lessA a. Net operating income increases by b. Total expected net operating income C Req 18
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