The metal shop produces 2.1 million metal fasteners a year for industrial use. at this level of production, its total fixed costs are $320,000 and its total costs are $522,000. the firm can increase its production by 5 percent, without increasing either its total fixed costs or its variable costs per unit. a customer has made a one-time offer for an additional 50,000 units at a price per unit of $0.08. should the firm sell the additional units at the offered price? why or why not? a. yes. the offered price is less than the marginal cost. b. yes. the offered price is equal to the marginal cost. c. yes. the offered price is greater than the marginal cost. d. no. the offered price is less than the marginal cost. e. no. the offered price is greater than the marginal cost.

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.)