was outsourced to a printing contiactor, so variable expenses cansist mostly of payments to this contractoc Required: 1.a. Prepare a contribution format income statement for the garne last year. 16. Compille the degree of operating leverage. 2 Management is corfident that the company can sea 59780 games next year (an increase of 10,780 games, or 22%, over lest yean? Given this assamption a. What is the expected percentage increase in net operating income for next year? b. What is the expected aimount of net operating income for noxs year? too not pecpore an income statement use the degree at operating leverage to compude your answes? Coaplete this question liy entering your answers is the tabs below. Mepare o contibution format incume stolement for the game last year. Magic Reaim, Incorporated, developed a new fantasy board game and sold 49.000 units last year at a selling piice of $62 per game. Fixed expenses associated with the game are $882.000 per year, and variable expenses are $42 per game. Production of the game was oitsourced to a printing contractor, so variable expenses consist mostly of payments to this contractoc. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Monagement is confident that the compony can sell 59780 games next year (an increase of 10,780 games, or 22%, 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 vour answers in the tabs below. Compute the degree of operating leverage. Mogic Realm, incorporated, developed a new fantasy board garne and sold 49,000 units last year at a selling price of 562 . per game. Find expenses assoclated with the game are $882,000 per year, and varlable expenses are $42 per game. Production of the game wals outsourced to a printing contractor, so variable experses consist mostly of payments to this contractor. Required: ta. Prepare a contribution format income statement for the game last year. 15. Compute the degree of operating loverage. 2 Management is confident that the compamy can sell 59780 games next year (an increase of 10.780 games, or 22%, over last yean. Given this assumptione. a. What is the expected percentage inciease in net operating incorne for next year? b. What is the expected amount of net operating income for nexa year? (Do not prepare an inconse statement, use the degree of operating leverage fo compute your answer.) Complete this guestion by entering vour answers in the tabs below. Manogement as confident that the company can sell 59,780 games next year (on increase of 10,780 games, or 27%, over last veor). Clyen this assumption: is. What is the expected amount of net opeeating income for next year? (Do not propare an income statement; use the degree of operating loverage to compute your aniswer.)
