Case Study: Personal Financial Planning
Project: Budget Active
Instructions
Click the links to open the resources below. These resources will help you complete the assignment. Once you have created your
file(s) and are ready to upload your assignment, click the Add Bilęs button below and select each file from your desktop or network
folder. Upload each file separately
Your work will not be submitted to your teacher until you click Submit
Documents
Student Guide
File Upload

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.)