5 points Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 16,600 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $249000 per year, and variable expenses are $49 per game. Production ofthe game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1a. Prepare a contribution format income statement for the game last year. 1b. Compute the degree ofoperating leverage. 2. Management is condent that the company can sell 20.250 games next year {an increase of 4150 games. or 25%. over last year}. rGiven this assumption: a. What is the expected percentage increase in net operating income for next year? b. I|Nhat 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.) 0 Answer is complete but not entirely Correct. Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Reg 2 Management is condent that the company can sell 20.750 games next year (an increase of 4,150 games, or 25%, 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.) Show less; a. Net operating income increases by 100 a % b. Total expected net operating income $ 89.395 6 points Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 16,600 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $249000 per year, and variable expenses are $49 per game. Production ofthe game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1a. Prepare a contribution format income statement for the game last year. 1b. Compute the degree ofoperating leverage. 2. Management is condent that the company can sell 20.750 games next year {an increase of 4150 games. or 25%. 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.) 0 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Reg 13 Reg 2 Compute the degree of operating leverage. j