n a process thinking philosophy, it is important to A. understand that optimization in decision making can only occur by disaggregating large-scale process problems into small problems more easily quantified and solved. B. view the functional disciplines in isolation of one another so that problems can be easily identified. C. view the functional disciplines as a collection of business processes emphasizing the cross-functional nature of decision making. D. understand that the value of the individual parts is greater in sum than the value of the system itself.

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.)