Contribution Format Income Statement | ||
Total | Per Unit | |
Sales Revenue | 2,546,000 | 67 |
Variable costs | 1,786,000 | 47 |
Contribution Margin | 760,000 | 20 |
Less: Fixed Costs | 665,000 | |
Net Operating Income | 95,000 | |
1-B Degree of Operating Leverage = Contribution Margin/Operating Income | 8.00 | |
a.% Increase in Net Operating Income = % increase in sales*Degree of Operating Leverage | 192 | % |
b.Expected Bet Operating Income | 277,400 |
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 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...
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 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 9,200 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...
Magic Realm, Inc., has developed a new fantasy board game. The company sold 36,000 games last year at a selling price of $62 per game. Fixed expenses associated with the game total $630,000 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 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 47,500 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $855,000 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: 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 28,800 games last year at a selling price of $63 per game. Fixed expenses associated with the game total $480,000 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...
Magic Realm, Inc., has developed a new fantasy board game. The company sold 48,000 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $864,000 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 28,500 games last year at a selling price of $66 per game. Fixed expenses associated with the game total $475,000 per year, and variable expenses are $46 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...