Magic Reaim, incorporated, has developed a new fantasy board game. The company sold 39,600 games last year at a selling price of $69 per game. Fixed expenses associated with the game total $693,000 per year, and yariable expenses-are $49 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 iast year: 1.b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 49,500 games next year (an increase of 9.900 games, or 25%, over tast 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 ar income statement, use the degree of operating leverage to compute your answer)