Mogic Realm, Incorporated, has dieveloped a new fantasy board game. The compary sold 9,400 games last yeat at a seling price of $63 per game. Fixed experses ascoclated with the game total $94,000 por yeac, and variable expenses are $43 per garne. Production of the game is eritrusted to a printing controctor. Variable expenses consist mostly of payments to this contractor. Required: 1a. Prepare a corrtibution format income statement for the game last year. 1b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 12,032., pomes next ycar (an increase of 2,632 gantes, or 2.8%, 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 omount of net operating income for next year? (Do not propare an income statement, use the degree of operating leverage to compute your answer) Complete this question by entering your answers in the tabs below. Macapernent is confident that the company can seli 12,032, games next year (an increase of 2,632 9ames, or 28\%, over last Yean), Given this assumption: rear), Given this assumpoba: of ooneratiog ieverage to compete your answer.) Shew lesta