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Management is confident that the company can sell 11,160 games next year (an increase of 2,160 games, or 24%, over last year). Given this assumption:

Management is confident that the company can sell 11,160 games next year (an increase of 2,160 games, or 24%, 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.)

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