Magic Realm, Inc., has developed a new fantasy board game. The company sold 43,500 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $783,000 per year, and variable expenses are $45 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 54,375 games next year (an increase of 10,875 games, or 25%, 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.) ook Fint Complete this question by entering your answers in the tabs below. rences Req 1A Reg 1B Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc., Contribution Income Statement Total Per Unit KR Roq 13 Magic Realm, Inc., has developed a new fantasy board game. The company sold 43,500 games last year at a selling price of game. Fixed expenses associated with the game total $783,000 per year, and variable expenses are $45 per game. Productic 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 54,375 games next year (an increase of 10,875 games, or 25%, over last 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 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 opetating leverage. Degree of operating leverage Magic Realm, Inc., has developed a new fantasy board game. The company sold 43,500 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $783,000 per year, and variable expenses are $45 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 54,375 games next year (an increase of 10,875 games, or 25%, 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.) Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2 Management is confident that the company can sell 54,375 games next year (an increase of 10,875 games, or 25%, everlast year). Glven 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.) % a. Net operating income increases by b. Total expected net operating income