Magic Realm, Inc., has developed a new fantasy board game. The company sold 36,800 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $644,000 per year, and variable expenses are $49 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor.

Management is confident that the company can sell 47,104 games next year (an increase of 10,304 games, or 28%, over last year).

b.	Compute the expected total dollar net operating income for next year. (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Total expected net operating income: