Magic RealmIncorporated, has developed a new fantasy board gameThe company sold 25,200 games last year...
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Magic RealmIncorporated, has developed a new fantasy board gameThe company sold 25,200 games last year at a price of $ 61 per gameexpenses associated with the game total $420,000 per year, and variable expenses are $41 per game Production of the game entrusted to a printing contractorVariable expenses consist mostly of payments to this contractor Required: Prepare a contribution format income statement for the game last year Compute the degree of operating leverage Management is confident that the company can sell 30,744 games next year an Increase of 5,544 games, or 22over last year) Given this assumption What is the expected percentage increase in net operating Income for next year? What is the expected amount of net operating Income for next year? (Do not prepare an Income statementuse the degree of perating leverage to compute your answer )
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