C Home B McGrz Question X Question & Question & Mail - Mail - @ Chapt M Readir M Conne Question New T Mail - RI Sum > + X - C O 8 https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F9 8 70% G E Chapter 4 McGraw Hill Assignment Saved Help Save & Exit Submit Check my work 3 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 expense associated with the game total $182,000 per year, and variable expense are $6 per game. Production of the game is entrusted to a printing contractor. Variable expense consist mostly of payments to this contractor. 1.34 points Required: 1-a. Prepare a contribution format Income statement for the game last year. Magic Realm, Inc., -Boo Contribution Income Statement Total Per Unit Sales References $ 300,000 $ Variable expenses 90,000 Contribution margin 210,000 $ Fixed expenses 82,000 Operating income 28,000 1-b. Compute the degree of operating leverage. (Round your answer to 1 decimal place.) Degree of operating leverage 7.5 2. Management Is confident that the company can sell 18,000 games next year (an Increase of 3,000 games, or 20%, over last year). a. Compute the expected percentage Increase In operating Income for next year. (Do not round intermediate calculations.) Mc Grav qb B. 3 W O ENG 11:08 PM US 2022-02-10C Home B McGrz Question X Question & Question & Mail - Mail - @ Chapt M Readir M Conne Question New T Mail - RI Sum > + X - C O B https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F9 8 70% G E Chapter 4 McGraw Hill Assignment @ Saved Help Save & Exit Submit Check my work 3 1.34 points 1-b. Compute the degree of operating leverage. (Round your answer to 1 decimal place.) Degree of operating leverage 7.5 References 2. Management Is confident that the company can sell 18,000 games next year (an Increase of 3,000 games, or 20%, over last year). a. Compute the expected percentage Increase In operating Income for next year. (Do not round Intermediate calculations.) Operating income increases by % b. Compute the expected total dollar operating Income for next year. (Do not prepare an Income statement; use the degree of operating leverage to compute your answer.) (Do not round intermediate calculations.) Total expected operating income Mc Gray OLIOCB O ENG 11:08 PM D B. 3 W US 2022-02-10