Magic Realm, Inc, has developed a new fantasy board game. The company sold 42,000 games last year at a selling price of $62 per game. Fixed expenses associated with the game total $756,000 per year, and varlable expenses are $42 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. Managements confident that the company can sen 53 760 games next year an increase of 1,760 games, or 28% 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)