Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 18,200 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $273,000 per year, and variable expenses are $47 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 22,932 games next year (an increase of 4,732 games, or 26\%, 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. Prepare a confribution format income statement for the game laer year: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 18,200 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $273,000 per year, and varlable expenses are $47 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 22,932 games next year (an increase of 4,732 games, or 26%, 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. Compute the degree of operoting leverage. Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 18,200 games last year at a selling price of $67 per game. Foed expenses associated with the game total $273,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractoc. Variable expenses consist mostly of payments to this contractor. Required: 10. Prepare a contribution format income statement for the game last yeat. 1.b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 22,932 games next year (an increase of 4.732 games, or 26%, over last year). Gven 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. Management is confident that the company can sell 22,932 games fext year (an increase af 4,732 games, or 26%, over last vear). Given this ascumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected ambunt of net operating income for newt year? (Do not prepare an income statement; use the degree of operating leverage to compute vour answer.)
