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Magie Realm, Iinc., has developed a new fantasy board game. The company sold 53,400 games last year at a selling price of $63 per game.

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Magie Realm, Iinc., has developed a new fantasy board game. The company sold 53,400 games last year at a selling price of $63 per game. Fixed expenses associated with the game total $979,000 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 Required: 1-a. Prepare a contribution format inoome statement for the game last year Centribution Inceme Statement Total Per Unit 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sel 67,818 games next year (an increase of 14,418 games, or next year (an increase of 14,418 games, or 27%, over last year). a. Compute the expected percentage increase in net operating income for next year b. Compute the expected total olar net operating income for next year. (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

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