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Magie Realm, Incorporated, developed a new fantasy board game and sold 18,600 units last year at a selling price of $65 per gane. Fixed expenses

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Magie Realm, Incorporated, developed a new fantasy board game and sold 18,600 units last year at a selling price of $65 per gane. Fixed expenses associated with the game are $279,000 per year, and variable expenses are $45 per game Production of the garne was outsourced to a printing contractor, so variable expenses consist mostly of payments to this contractor Required: 1-a. Prepare a contribution format income statement for the game last yesc. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 24,180 games next year (an increase of 5,580 games, or 30\%, over last years 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 answet.) Complete this question by entering your answers in the tabs below. Management is confident that the company can sell 24,180 games next year (an increase of 5,580 games, or 30\%, 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.)

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