Magic Realm, Inc., has developed a new fantasy board game. The company sold 58,200 games last year at a selling price of $67 per game.

 Magic Realm, Inc., has developed a new fantasy board game. The company sold 58,200 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $1,067,000 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.

Prepare a contribution format income statement for the game last year.

 

Explanation

Sales: 58,200 games × $67 = $3,899,400

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