Fisk company uses a standard cost accounting system. during january, the company reported the following manufacturing variances. materials price variance $1,200 u labor quantity variance $750 u materials quantity variance 800 f overhead variance 800 u labor price variance 550 u in addition, 8,000 units of product were sold at $8 per unit. each unit sold had a standard cost of $5. selling and administrative expenses were $8,000 for the month. prepare an income statement for management for the month ended january 31, 2020.

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 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 58,880 games next year (an increase of 12,880 games, or 28%, 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.)