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Business, 26.08.2019 03:00, Bassoonist
Search costs are (a the financial and opportunity costs consumers pay when looking for a good or service (b the point at which quantity demanded and quantity supplied are equal (c a situation in which quantity supplied is greater than quantity demanded; also known as excess supply (d a situation in which quantity demanded is greater than quantity supplied; also known as excess demand
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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.)
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