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.) $1,250,000 315,000 620,000 Sales revenue Manufacturing costs: Fixed Variable Selling costs: Fixed Variable Administrative costs: Fixed Variable 25,000 55,000 65,000 20,000 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)? Req 1A Req 1B Req 2 Req3 Req 4 Prepare a traditional income statement for the company. EUROPA PUBLICATIONS, INC. Income Statement For the Year Ended December 31, 20XX Operating expenses: Req 1A Req 1B Reg 2 Req3 Reg 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: Req 1A Reg 1B Reg 2 Req3 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 Req 2 Req3 Req 4 Suppose sales revenue increases by 13 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 %