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Magic Reaim, Incotporated, has developed a new fantasy boaid game. The compary sold 19.000 games last year at a selting price of $62 per game.

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Magic Reaim, Incotporated, has developed a new fantasy boaid game. The compary sold 19.000 games last year at a selting price of $62 per game. Fixed expenses associated with the game total $285,000 per yeat, and variable expenses are $42 per game Pioduction of the game is entrusted to a printing contractor. Variable expensets consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 16. Compute the degree of operating leverage. 2. Management is confibent that the company can sell 24.130 games next year (an increase of 5,130 games, or 27., over last year). Given this assumption: a. What is the expected percentage inciease 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; ise the degree of operating leverage to compute your answerd) Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement for the game last year

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