{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T02:38:59-04:00", "answer_date": "2024-06-29 02:38:59", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4450748", "url": "\/study-help\/questions\/magic-realm-inc-has-developed-a-new-fantasy-board-game-4450748", "question_creation_date_js": "2024-06-29T02:38:59-04:00", "question_creation_date": "Jun 29, 2024 02:38 AM", "meta_title": "[Solved] Magic Realm, Inc., has developed a new fa | SolutionInn", "meta_description": "Answer of - Magic Realm, Inc., has developed a new fantasy board game. The company sold 52,200 games last year at a selling price | SolutionInn", "meta_keywords": "magic,realm,inc.,developed,new,fantasy,board,game,company,sold,52,200,games", "question_title_h1": "Magic Realm, Inc., has developed a new fantasy board game. The company sold 52,200 games last year at a selling price of $61 per game.", "question_title": "Magic Realm, Inc., has developed a new fantasy board game. The company", "question_title_for_js_snippet": "Magic Realm, Inc , has developed a new fantasy board game The company sold 52,200 games last year at a selling price of $61 per game Fixed expenses associated with the game total $957,000 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 1 b Compute the degree of operating leverage 2 Management is confident that the company can sell 66,294 games next year (an increase of 14,094 games, or 27 , over last year) 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 of operating leverage to compute your answer ) Complete this question by entering your answers in the tabs below Req 1A Req 1B Req 2 Compute the degree of operating leverage 4 nces Degree of operating leverage", "question_description": "

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\"image<\/div><\/div><\/div> Magic Realm, Inc., has developed a new fantasy board game. The company sold 52,200 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $957,000 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. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 66,294 games next year (an increase of 14,094 games, or 27%, over last year). 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 of operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Compute the degree of operating leverage. 4 nces Degree of operating leverage", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "0801416450", "uri": "\/textbooks\/incredulous-reader-literature-and-the-function-of-disbelief-1st-edition-9780801416453", "name": "Incredulous Reader Literature And The Function Of Disbelief", "edition": "1st Edition" }, "question_posted": "2024-06-29 02:38:59", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-cost-of-producing-x-ounces-of-gold-from", "description": "The cost of producing x ounces of gold from a new gold mine C = f(x) is dollars. (a) What is the meaning of the derivative f (x)? What are its units? 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