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 Manufacturing costs: Fixed $1,250,000 315,000 620,000 Variable Selling costs: Fixed 25,000 55,000 Variable Administrative costs Fixed 65,000 20,000 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 13 percent. What will be the percentage increase in net income? 4. Which income statement would an operating manager use to answer requirement (3)