ALL ONE QUESTION

Exercise 5-15 (Algo) Operating Leverage (LO5-1, LO5-8) Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 37,200 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $651,000 per year, and variable expenses are $49 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. Maagement is confident that the company can sell 45,384 games next year (an increase of 8,184 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 your answers in the tabs below. Reg 1 Reg 18 Req2 Prepare a contribution format Income statement for the game last year. Magic Realm, Incorporated Contribution Income Statement Per Unit Total 0 $ 0 Exercise 5-15 (Algo) Operating Leverage (LO5-1, LO5-8) Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 37,200 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $651000 per year, and variable expenses are $49 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, 1-6. Compute the degree of operating leverage. 2. Management is confident that the company can sell 45,384 games next year (an increase of 8,184 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 your answers in the tabs below. REGLA Reg 2 Compute the degree of operating leverage. Deore of operating Exercise 5-15 (Algo) Operating Leverage (L05-1, LO5-8) Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 37.200 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $651,000 per year, and variable expenses are $49 per game Production of the game is entrusted to a printing contractor Variable expenses consist mostly of payments to this contractor Required: 1-0. Prepare a contribution format income statement for the game last year. 1-5. Compute the degree of operating leverage. 2. Management is confident that the company can sell 45,384 games next year con increase of 8,184 games, or 22%, over last year). Glven 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 your answers in the tabs below. Req IA Reg 13 Reg 2 Management is confident that the company can sell 45,384 games next year (an increase of 8,184 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.) Show less % a. Net operating income increases by b. Total expected net operating income