Compute the expected percentage increase

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Magical Creations Inc. has developed a new fantasy board game. In 2016, the firm sold 30,000 games at a sales price of $ 40. The associated fixed costs were $ 306,000 and variable costs were $ 12 per game. a. Compute the degree of operating leverage. b. Management is confident that they can sell an additional 6,000 games in 2017. Compute the expected percentage increase in net income for 2017.

Reference no: EM131812351

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