Exercise 2-15 (Algo) Operating Leverage [LO2-1, LO2-8] Magic Realm, Incorporated, has developed a new fantasy board game. The company sold t8. 200 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $273,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractoc. Variable expenses consist mostly of payments to this confrector. Required: 1-a. Propare a contribution format income statement for the game last year. 16. Compute the degree of operating leverage. 2. Management is confident that the company can sell 22,932 games next year (an increase of 4,732 games, or 26\%, ower 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 statementi use the degree of operating leverage to compute your answor) Complete this questlon by entering your answers in the tabs below. Prepare a contribution format income statement for the game last year