Exercise 7-28 Publishing; Contribution Income Statement (LO 7-7, 7-8) 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 Manufacturing costs: Fixed $1,750,000 572,000 Variable 818,000 Selling costs: Fixed 35,000 Variable 65,000 Administrative costs: Fixed 75,000 Variable 30,000 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 14 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 1B Req 2 Req 3 Req 4 Prepare a traditional income statement for the company. EUROPA PUBLICATIONS, INC. Income Statement For the Year Ended December 31, 20XX Operating expenses: $ 0 0 $ 0 < Req 1A Req 1B >