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. {Ignore income taxes.) Sales revenue $1,266,966 Manufacturing costs: Fixed 283J989 Variable 6165966 Selling costs: Fixed 24,999 Variable 543966 Administrative costs: Fixed 541999 Variable 19,966 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 1A Req IB Reg 2 Req 3 Req 4 Prepare a traditional income statement for the company. 3. Suppose sales revenue increases by12 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 1A Req 13 Reg 2 Req 3 Req 4 Prepare a traditional income statement for the company. Req 1A Req 1B Req 2 Req 3 Req 4 Prepare a contribution income statement for the company. EUROPA PUBLICATIONS, INC. Income Statement For the Year Ended December 31, 20XX Variable expenses: Fixed expenses: Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Req 4 What is the firm's operating leverage for the sales volume generated during the prior year? (Round your answer to 2 decimal places.) Operating leverage Req 1A Req 1B Reg 2 Reg 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 % 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? Contribution income statement Traditional income statement