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Business, 21.01.2021 22:20 oglilbrandon

Magic Realm, Inc., has developed a new fantasy board game. The company sold 25,800 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $430,000 per year, and variable expenses are $45 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 33,282 games next year (an increase of 7,482 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year

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Magic Realm, Inc., has developed a new fantasy board game. The company sold 25,800 games last year a...
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