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velue 20.00 points Problem 11-19B Simple Rate of Return: Payback [L011-1, LO11-4) Saitama Amusements Corporation places electronic games and other amusement devices in supermarkets and

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velue 20.00 points Problem 11-19B Simple Rate of Return: Payback [L011-1, LO11-4) Saitama Amusements Corporation places electronic games and other amusement devices in supermarkets and similar outlets throughout Japan. Saitama Amusements is investigating the purchase of a new electronic game called Mythical Marauders. The manufacturer will sell 20 games to Saitama Amusements for a total price of 195,000 (The Japanese currency Is the yen, which is denoted by the symbol \ ) Saitama Amusements has determined the following additional information about the game The game would have a five-year useful life and a negligible salvage value. The company uses straight- ine depreciation The game would replace other games that are unpopular and generating little revenue. These other games would be sold for a total of 28,000 a b. c. Saitama Amusements estimates that Mythical Marauders would generate annual incremental revenues of 235,000 (total for all 20 games) Annual incremental out-of-pocket costs would be (in total) maintenance, 51 000 and insurance, 9600 In addition, Satama Amusements would have to pay a commission of 42% of total revenues to the supermarkets and other outlets in which the games were placed I(lgnore income taxes) Required: 1. Prepare a contribution format income statement showing the net operating income each year from Mythical Marauders Foxed expenses Tolal tixed expenses o searchh 0 velue 20.00 points Problem 11-19B Simple Rate of Return: Payback [L011-1, LO11-4) Saitama Amusements Corporation places electronic games and other amusement devices in supermarkets and similar outlets throughout Japan. Saitama Amusements is investigating the purchase of a new electronic game called Mythical Marauders. The manufacturer will sell 20 games to Saitama Amusements for a total price of 195,000 (The Japanese currency Is the yen, which is denoted by the symbol \ ) Saitama Amusements has determined the following additional information about the game The game would have a five-year useful life and a negligible salvage value. The company uses straight- ine depreciation The game would replace other games that are unpopular and generating little revenue. These other games would be sold for a total of 28,000 a b. c. Saitama Amusements estimates that Mythical Marauders would generate annual incremental revenues of 235,000 (total for all 20 games) Annual incremental out-of-pocket costs would be (in total) maintenance, 51 000 and insurance, 9600 In addition, Satama Amusements would have to pay a commission of 42% of total revenues to the supermarkets and other outlets in which the games were placed I(lgnore income taxes) Required: 1. Prepare a contribution format income statement showing the net operating income each year from Mythical Marauders Foxed expenses Tolal tixed expenses o searchh 0

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