This question is a few separate parts and I can't figure out any of it on my own now I'm here hoping that someone is willing to help show me how to solve it because I'm not sure where to really even begin with this one to be quite frank.
Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,700 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $87,000 per year, and variable expenses are $49 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 11,223 games next year (an increase of 2,523 games, or 29%, over last year). Given this assumption: 6. 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. Req lB Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,700 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $87,000 per year. and variable expenses are $49 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 11,223 games next year (an increase of 2,523 games, or 29%, 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. Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,700 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $87,000 per year, and variable expenses are $49 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 11,223 games next year (an increase of 2,523 games, or 29%, 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. Management is condent that the company can sell 11,223 games next year (an increase of 2,523 games, or 29%, 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.) Show lessA Net operating income increases by b. Total expected net operating income
