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Magic Realm, Inc. has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $22 per game.

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Magic Realm, Inc. has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $22 per game. Fixed costs associated with the game total $180,000 per year, and variable costs are $8 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor. Required: 1-o. Prepare an income statement for the game last year. Total Per Unit Sales 0 $ 0 $ A 1-b. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating loverage 2. Management believes that the company's sales will increase by 2,700 games next year. Compute the following: a. The expected percentage increase in net income for next year (Do not round intermediate calculations. Round your answers to the nearest whole percentage.) Expected porcentage

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