Magic Realm, Inc., has developed a new fantasy board game. The company sold 42,000 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $756,000 per year, and variable expenses are $41 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. Degree of operation leverage__________. 2. Management is confident that the company can sell 52,920 games next year (an increase of 10,920 games, or 26%, over last year). a. Compute the expected percentage increase in net operating income for next year. Net operating income increases by__________%. b. Compute the expected total dollar net operating income for next year. (Do not prepare an income statement; use the degree of operating leverage to compute your answer.) Total expected net operating income _________.