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Magic Realm, Inc., has developed a new fantasy board game. The company sold 59,400 games last year at a selling price of $62 per game.
Magic Realm, Inc., has developed a new fantasy board game. The company sold 59,400 games last year at a selling price of $62 per game. Fixed expenses associated with the game total $1,089,000 per year, and variable expenses are $42 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 73,062 games next year (an increase of 13,662 games, or 23%, 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. Reg 1A Reg 18 Reg 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc., Contribution Income Statement Total Per Unit Req 18 > Magic Realm, Inc, has developed a new fantasy board game. The company sold 59,400 games last year at a selling price of 562 per game. Fixed expenses associated with the game total $1089,000 per year, and variable expenses are $42 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 1-5. Compute the degree of operating leverage 2. Management is confident that the company can sell 73,062 games next year an increase of 13,662 games, or 23%, 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. Red LA Real 18 Reg 2 Compute the degree of operating leverage. Degree of operating leverage ( Reg 1A Reg 2 > Magic Realm, Inc., has developed a new fantasy board game. The company sold 59,400 games last year at a selling price of $62 per game. Fixed expenses associated with the game total $1,089,000 per year, and variable expenses are $42 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, 1-5. Compute the degree of operating leverage 2 Management is confident that the company can sell 73,062 games next year (an increase of 13,662 games, or 23%, 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. Reg 1 Management is confident that the company can sell 73,062 games next year (an increase of 13,662 games, or 23%, overlast 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.) Show less a Net Operating income increases by D oa expected netopeng into Reg 16
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