Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 33,200 games last year at a selling price $63 per game. Fixed expenses associated wth the game total $581,000 per year, and vanable expenses are $43 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. 2. Management is confident that the company can sell 41,832 games next year (an increase of 8,632 games, or 26\%, 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 operaung leverage to compute your answer.) Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement for the game last year. 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 41,832 games next year (an increase of 8,632 games, or 26%, 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.)