Compute the degree of operating leverage for magic realm ltd

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Magic Realm Ltd has developed a new fantasy board game. The company sold 18,500 games last year at a selling price of £18,500 per game. Fixed costs associated with the game total £226,625 per year, and variable costs are £6 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor.

Problem 1: Compute the degree of operating leverage. (Round your answer to 1 decimal place.)

Reference no: EM132655588

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