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just need help with 2a, cant figure it out Magic Realm, Inc., has developed a new fantasy board game. The company sold 49,000 games last
just need help with 2a, cant figure it out
Magic Realm, Inc., has developed a new fantasy board game. The company sold 49,000 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $882,000 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. Required: 1-a. Prepare a contribution format income statement for the game last year Magic Realm, Inc., Contribution Income Statement Total Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 3,185,000 2,205,000 980,000 882,000 $98,000 1-b. Compute the degree of operating leverage. Degree of operating leverage 10Step by Step Solution
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