Graded Homework Help Save & Exit Subm Check my work Exercise 5-15 Operating Leverage (LO5-1, LO5-8] Magic Realm, Inc., has developed a new fantasy board game. The company sold 8,600 games last year at a selling price of $66 per game. Fixed expenses associated with the game total $86,000 per year, and variable expenses are $46 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 10,406 games next year (an increase of 1,806 games, or 21%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Dopot prepare an income statement, use the degree of operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Red LA Reg 1B Reg 2 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc., Contribution Income Statement Total Per Unit Req 1B > . Widt is expecteu amount of retuperaung income or next yedi! (DO TOL prepare an income Statement, use we uegreen operating leverage to compute your answer.). Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Compute the degree of operating leverage. Degree of operating leverage . Req 1A Req2 > Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Management is confident that the cor any can sell 10,406 games next year (an increase of 1,806 games, or 21%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) Show less a Net operating income increases by b. Total expected not operating income ( Req 18