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Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 51,600 games last year at a selling price of $63 per game.

Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 51,600 games last year at a selling price of $63 per game. Fixed expenses associated with the game total $946,000 per year, and variable expenses are $43 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. 1-b. Compute the degree of operating leverage.

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