Europa Publications, Inc. specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company's operations during the prior year are given in the following table. All units produced during the year were sold. (lgnore income taxes.) Sales revenue $2,000,000 Manufacturing costs: Fixed 600,000 935,000 Variable Selling costs: Fixed 40,000 70,000 Variable Administrative costs: Fixed 80,000 35,000 Variable Required: 1-a. Prepare a traditional income statement for the company. 1-b. Prepare a contribution income statement for the company. 2. What is the firm's operating leverage for the sales volume generated during the prior year? 3. Suppose sales revenue increases by 12 percent. What will be the percentage increase in net income? 4. Which income statement would an operating manager use to answer requirement (3)? Complete this question by entering your answers in the tabs below. Req 1B Req 2 Req 3 Req 4 Req 1A Prepare a traditional income statement for the company. EUROPA PUBLICATIONS, INC. Income Statement For the Year Ended December 31, 20XX Operating expenses: Rea 1A Req 1B Complete this question by entering your answers in the tabs below. Req 1A Req 2 Req 3 Req 4 Req 1B contribution income statement for the company. Prepare EUROPA PUBLICATIONS, INC. Income Statement For the Year Ended December 31, 20XX Variable expenses: Fixed expenses: Req 2 Req 1A Complete this question by entering your answers in the tabs below. Req 2 Req 1A Req 1B Req 3 Req 4 Suppose sales revenue increases by 12 percent. What will be the percentage increase in net income? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Percentage increase in net income Req 4 Req 2 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Req 4 Which income statement would an operating manager use to answer requirement (3)? OContribution income statement Traditional income statement Req 3 Req 4