Magic Realm, Incorporated, has developed a new fantasy board game. The compony sold 9,400 games last year af a selling price of $66 per game. Fixed expenses asseciated with the game total $94,000 per year, and variable expenses are 546 per 93me. 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 stotement for the game last year. 1H. Compute the degree of operating leverage. 2. Management is confident thot the company can sell 11,750 games next year (an increase of 2,350 games, or 25%, over iast year). Given this assumption a. What is the expected percentage increase in net operating income for next year? b. Whot 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 answet) Prepare a contribution format income statement for the game last year. of the game is entrusted to a printing contractor. Variable expenses consist mostly 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 11,750 games next year (an 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 pre! operating leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Management is confident that the company can sell 11,750 games next year (an increase of 2,350 games, or 25%, 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.)