Magic Realm, Inc. has developed a new fantasy board game. The company sold 15.000 games last year at a selling price of

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Magic Realm Inc Has Developed A New Fantasy Board Game The Company Sold 15 000 Games Last Year At A Selling Price Of 1 (27 KiB) Viewed 23 times

Magic Realm, Inc. has developed a new fantasy board game. The company sold 15.000 games last year at a selling price of $21 per game. Fixed costs associated with the game total $185,000 per year, and variable costs are $7 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor. Required: 1-a. Prepare an Income statement for the game last year. Total Per Unit Sales 0 $ 0 $ 0 1-b. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2 Management believes that the company's sales will increase by 2,700 games next year. Compute the following: a. The expected percentage Increase in net Income for next year. (Do not round intermediate calculations. Round your answers to the nearest whole percentage.) Expected percentage %6 b. The expected total dollar net 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 net income