Customer Care specialist x Bloomerang Customer Sup x MFwd: Claims Support Spec × Indeed Resume x ACG2071 (5)-Managerial × ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%2 Chapter 5-Assignment Saved 4 2 points eBook Print References Magic Realm, Incorporated, developed a new fantasy board game and sold 43,500 units last year at a selling price of $62 per game. Fixed expenses associated with the game are $783,000 per year, and variable expenses are $42 per game. Production of the game was outsourced to a printing contractor, so 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 54,375 games next year (an increase of 10,875 games, or 25%, 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. Mc Graw Hill esc Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Incorporated Contribution Income Statement 1 11 9 @ 72 M 个 Total Per Unit M 31 < Prev 4 of 6 Next > C $ 644 #3 Π % 95 e r acer 6 & 27 * 00 8 し t y D i 6 ) 0 о
Customer Care specialist x Bloomerang Customer Sup x MFwd: Claims Support Spec × Indeed Resume x ACG2071 (5)-Managerial × ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%2 Chapter 5-Assignment Saved 4 2 points eBook Print References Magic Realm, Incorporated, developed a new fantasy board game and sold 43,500 units last year at a selling price of $62 per game. Fixed expenses associated with the game are $783,000 per year, and variable expenses are $42 per game. Production of the game was outsourced to a printing contractor, so 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 54,375 games next year (an increase of 10,875 games, or 25%, 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. Mc Graw Hill esc Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Incorporated Contribution Income Statement 1 11 9 @ 72 M 个 Total Per Unit M 31 < Prev 4 of 6 Next > C $ 644 #3 Π % 95 e r acer 6 & 27 * 00 8 し t y D i 6 ) 0 о
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Customer Care specialist x
Bloomerang Customer Sup x MFwd: Claims Support Spec ×
Indeed Resume
x
ACG2071 (5)-Managerial
×
ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%2
Chapter 5-Assignment
Saved
4
2
points
eBook
Print
References
Magic Realm, Incorporated, developed a new fantasy board game and sold 43,500 units last year at a selling price of $62 per game.
Fixed expenses associated with the game are $783,000 per year, and variable expenses are $42 per game. Production of the game
was outsourced to a printing contractor, so 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 54,375 games next year (an increase of 10,875 games, or 25%, 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.
Mc
Graw
Hill
esc
Req 1A
Req 1B
Req 2
Prepare a contribution format income statement for the game last year.
Magic Realm, Incorporated
Contribution Income Statement
1
11
9
@
72
M
个
Total
Per Unit
M
31
< Prev
4 of 6
Next >
C
$
644
#3
Π
%
95
e
r
acer
6
&
27
* 00
8
し
t
y
D
i
6
)
0
о
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