1a) Contribution margin income statement
Sales (17800*63) | 1121400 |
Variable cost | 765400 |
Contribution margin | 356000 |
Fixed cost | 267000 |
Operating income | 89000 |
1b) Degree of operating leverage = Contribution margin/Operating income = 356000/89000 = 4 Times
2a) Net operating income increase by (30*4) = 120%
2b) Net operating income = 89000*2.2 = 195800
Magic Realm, Inc., has developed a new fantasy board game. The company sold 17,800 games last...
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