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Magic Realm, Inc., has developed a new fontasy game. Fixed expenses associated with the game total $485,000 per year, and variable expenses are $45 per
Magic Realm, Inc., has developed a new fontasy game. Fixed expenses associated with the game total $485,000 per year, and variable expenses are $45 per game. Production of the board game. The company sold 29,100 games last year et a selling price of $65 per 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 lest year 1-b. Compute the degree of operating leverage 2 Management is confident that the company can sell 35793 games next year (an increase of 6,693 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 Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year Total
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