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Magic Realm, Inc., has developed a new fantasy board game. The company sold 9,800 games last year at a selling price of $61 per game.
Magic Realm, Inc., has developed a new fantasy board game. The company sold 9,800 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $98,000 per year, and variable expenses are $41 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 1-b. Compute the degree of operating leverage Degree of operating leverage
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