Homework Help Question & Answers

mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchurl=https%253A%252F%252Fims.mheducation.com%252Fmghmiddle ses Saved He Magic Realm, Inc., has developed a new fantasy board game. The company...


mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchurl=https%253A%252F%252Fims.mheducation.com%252Fmghmiddl
mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchurl=https%253A%252F%252Fims.mheducation.com%252Fmghmiddle ses Saved He Magic Realm, Inc., has developed a new fantasy board game. The company sold 17,000 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $255,000 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 21,760 games next year (an increase of 4,760 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 Reg 1B Reg 2 Compute the degree of operating leverage. Degree of operating leverage < Reg 1A Reg 2 >
0 0
Add a comment
Answer #1

1 A Contibution format Income statement Amount Per units Sales 17,000 x 64 1,088,000 64 less: Variable cost 748,000 44 Contri1 B Income statement Amount Per units Sales 17,000 x 64 1,088,000 64 less: Variable cost 748,000 44 Contribution margin 340,0Question 2 Income statement Next year Income Statement after 28% increase in sales Amount Per units Amount Per units Sales 17B

Next year Income Statement after 28% increase in sales Amount Per units Sales 21,760 x 64 1,392,640 64 Degree of Operating Le

Add a comment
Know the answer?
Add Answer to:
mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchurl=https%253A%252F%252Fims.mheducation.com%252Fmghmiddle ses Saved He Magic Realm, Inc., has developed a new fantasy board game. The company...
Your Answer:

Post as a guest

Your Name:
What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Magic Realm, Inc., has developed a new fantasy board game. The company sold 17,000 games last...

    Magic Realm, Inc., has developed a new fantasy board game. The company sold 17,000 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $255,000 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...

  • Magic Realm, Inc., has developed a new fantasy board game. The company sold 53,400 games last...

    Magic Realm, Inc., has developed a new fantasy board game. The company sold 53,400 games last year at a selling price of $70 per game. Fixed expenses associated with the game total $979,000 per year, and variable expenses are $50 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...

  • Magic Realm, Inc., has developed a new fantasy board game. The company sold 9,200 games last...

    Magic Realm, Inc., has developed a new fantasy board game. The company sold 9,200 games last year at a selling price of $70 per game. Fixed expenses associated with the game total $92,000 per year, and variable expenses are $50 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...

  • 15 Magic Realm, Inc., has developed a new fantasy board game. The company sold 32,400 games...

    15 Magic Realm, Inc., has developed a new fantasy board game. The company sold 32,400 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $567,000 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. oints eBook Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the...

  • Magic Realm, Inc., has developed a new fantasy board game. The company sold 44,500 games last...

    Magic Realm, Inc., has developed a new fantasy board game. The company sold 44,500 games last year at a selling price of $68 per game. Fixed expenses associated with the game total $801,000 per year, and variable expenses are $48 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...

  • Magic Realm, Inc., has developed a new fantasy board game. The company sold 9,400 games last...

    Magic Realm, Inc., has developed a new fantasy board game. The company sold 9,400 games last year at a selling price of $63 per game. Fixed expenses associated with the game total $94,000 per year, and variable expenses are $43 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...

  • Thank you so much for the help!!! Magic Realm, Inc., has developed a new fantasy board...

    Thank you so much for the help!!! Magic Realm, Inc., has developed a new fantasy board game. The company sold 48,000 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $880,000 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: 1a. Prepare a contribution format income statement for the game last...

  • Magic Realm, Inc., has developed a new fantasy board game. The company sold 29,700 games last...

    Magic Realm, Inc., has developed a new fantasy board game. The company sold 29,700 games last year at a selling price of $62 per game. Fixed expenses associated with the game total $495,000 per year, and variable expenses are $42 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...

  • Magic Realm, Inc., has developed a new fantasy board game. The company sold 16,600 games last...

    Magic Realm, Inc., has developed a new fantasy board game. The company sold 16,600 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $249,000 per year, and variable expenses are $47 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...

  • Magic Realm, Inc., has developed a new fantasy board game. The company sold 38,000 games last...

    Magic Realm, Inc., has developed a new fantasy board game. The company sold 38,000 games last year at a selling price of $67 per game. Flxed expenses associated with the game total $665,000 per year, and variable expenses are $47 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...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.