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Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 26,400 games last year at a selling price of $67 per game.

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Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 26,400 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $440,000 per yen, and variable expenses are 547 per game. Production of the game is entrusted to a printing contractor Variable expenses consist mostly of payments to this contractor Required: ta. Prepare a contribution format income statement for the game last year. 1-6. Compute the degree of operating leverage 2. Management is confident that the company can sell 31,944 games next year (an increase of 5,544 games, or 21%, 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 statemervt, use the degree of operating leverage to compute your answer) Complete this question by entering your answers in the tabs below. Red LA Reg 13 Reg 2 Prepare a contribution format income statement for the game last year Magic Realm, Incorporated Contribution Income Statement Total Per Unit

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