Magic Realm, Inc, has developed a new fantasy board game. The company sold 16,600 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $249,000 per year, and variable expenses are $45 per game, Production of the game is entrusted to 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 20,418 games next year on increase of 3,818 games, or 23%, 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 18 Reg 2 Prepare a contribution format income statement for the game last year Magic Realm, Inc., Contribution Income Statement Total Per Unit Salon Variable expenses Contribution margin Found expenses O Tiene 0 gic Realm, Inc., has developed a new fantasy board game. ne. Fixed expenses associated with the game total $249,000 per year, and variable expenses are $45 per game. Pre me is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor quired: Prepare a contribution format income statement for the game last year. . Compute the degree of operating leverage. Management is confident that the company can sell 20,418 games next year (an increase of 3,818 games, or 23%, ove iven this assumption: What is the expected percentage increase in net operating income for next year? What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Reck.B Reg 2 Reg 1A Compute the degree of operating leverage. Degree of operating leverage Req2 >