Magic Realm, Inc. has developed a new fantasy board game. The company sold 16,000 games last year at a selling price of $21 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $8 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor. Required: 1-a. Prepare an income statement for the game last year. Sales Total Per Unit 1-b. Compute the degree of operating leverage. (Round your answer to 2 decimal places.)