Paladin furnishings generated $4 million in sales during 2016, and its year-end total assets were $2.6 million. also, at year-end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. looking ahead to 2017, the company estimates that its assets must increase by $0.65 for every $1.00 increase in sales. paladin's profit margin is 3%, and its retention ratio is 35%. how large of a sales increase can the company achieve without having to raise funds externally? write out your answer completely. for example, 25 million should be entered as 25,000,000. do not round intermediate calculations. round your answer to the nearest cent.

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 expenses associated with the game total $182,000 per year, and variable expenses are $6 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 58,880 games next year (an increase of 12,880 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.)