Return to Magic Realm, Inc., has developed a new fantasy board game. The company sold 37,200 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $651,000 per year, and variable expenses are $41 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 48,360 games next year (an increase of 11,160 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) Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg2 Prepare a contribution format income statement for the game last year. Per Magic Realm, Inc Contribution Income Statement Total Unit Sales $ 2,200,200 $ 61 Variable expenses 1,525,200 41 Contribution margin 744,000 $ 20 Fored expenses 651,000 Net operating income IS 93,000 Magic Realm, Inc., has developed a new fantasy board game. The company sold 37,200 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $651,000 per year, and variable expenses are $41 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 48,360 games next year (an increase of 11,160 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.) Answer is not complete Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 Reg 2 Compute the degree of operating leverage. Degree of operating loverage Retur Magic Realm, Inc., has developed a new fantasy board game. The company sold 37,200 games last year at a selling price of $61 per game. Fixed expenses associated with the game total $651,000 per year, and variable expenses are $41 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 48,360 games next year (an increase of 11,160 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.) Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Management is confident that the company can sell 48,360 games next year (an increase of 11,160 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.) Show less % Net operating income increases by Total expected not operating income b.