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omework Exercise 5-15 Operating Leverage [LO5-1, LO5-8] Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,800 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $88,000 per year, and variable expenses are $44 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 11,264 games next year (an increase of 2,464 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.) Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Req 2 Prepare a contribution format Income statement for the game last year. Magic Realm, Inc., Contribution Income Statement $ Saved Total Per Unit 0 $ 0 0 Help

er 5 Homework Exercise 5-15 Operating Leverage [LO5-1, LO5-8] Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,800 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $88,000 per year, and variable expenses are $44 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 11,264 games next year (an increase of 2,464 games, or 28%, over last year). Given this assumption: Req 2 Compute the degree of operating leverage. Degree of operating leverage Saved 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 1A Rg 18 Question < Req1A Reg 2 > He

Assignments Accounting Principles ter 5 Homework es Req 1A Exercise 5-15 Operating Leverage [LO5-1, LO5-8] Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,800 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $88,000 per year, and variable expenses are $44 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 11,264 games next year (an increase of 2,464 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.) Complete this question by entering your answers in the tabs below. Req 18 M Question 5 - Chapter 3 Homework-Connect Req 2 Saved a Net operating income increases by b. Total expected net operating income Management is confident that the company can sell 11,264 games next year (an increase of 2,464 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.) Req 18 M Question 4- Hey 2 Show less A Help