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Problem 4 Magical Creations Inc. has developed a new fantasy board game. In 2022, the firm sold 20 games at a sales price of
Problem 4 Magical Creations Inc. has developed a new fantasy board game. In 2022, the firm sold 20 games at a sales price of $30. The associated fixed costs were $ 190,000 and variable costs were $ 18 per game. a. Compute the degree of operating leverage. b. Management is confident that they can sell an additional 5,000 games in 2023. Compute the expected percentage increase in profit for 2023.
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