Bought a delivery truck and agreed to pay $60,600 at the end of three years. Rented an office building and was given the option of paying $10,600 at the end of each of the next three years or paying $28,600 immediately. Established a savings account by depositing a single amount that will increase to $91,200 at the end of seven years. Decided to deposit a single sum in the bank that will provide 10 equal annual year-end payments of $40,600 to a retired employee (payments starting December 31 of this year).

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.)