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. Total Per Unit Sales 1-b. Compute the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage 2. Management believes that the company's sales will increase by 2,880 games next year. Compute the following: a. The expected percentage increase in net income for next year. (Do not round intermediate calculations. Round your answers to the nearest whole percentage.) Expected percentage % b. The expected total dollar net income for next year. (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) (Do not round intermediate calculations.) Total expected net income