Craft, inc. normally produces between 120,000 and 150,000 units each year. producing more than 150,000 units alters the company's cost structure. for example, faced costs increase because more space must be rented, and additional supervisors must be hired. the production range between 1120,000 and 150,000 is called the: a) differential range. b) median range c) relevant range d) leverage range

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.)