John is a newly minted quality engineer at MakeStuff Inc. His boss tells him to increase the process capability index of their main product. John is somewhat lazy and so he does not want to tackle the variation in the process. So he decides to simply increase the upper specification limit and reduce the lower specification limit. Does this increase the process capability index?a. No, it does not, because the variation in the process stays unchanged.
b. Yes, it does, though one might question if the underlying process is really better.
c. That depends on many other variables, including the control limits.
d. No, the process capability index would only change if the control limits were changed

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.)