Exercise 6-15 Operating Leverage (LO6-1, LO6-8] Magic Realm, Inc., has developed a new fantasy board game. The company sold 49,500 games last year ata selling price of $65 per game Fixed expenses associated with the game total $891,000 per year, and variable expenses are $45 per game. Production of the game is entrusted to a printing contractot. 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 loverage 2. Management is confident that the comportano 62,370 games next year (an increase of 12,870 games, or 26%, over last year) Given this assumption: a. What is the expected percentage can bet operating income for next year? b. What is the expected amount of iting come for next year? (Do not prepare an income statement use the degree of operating leverage to compute your Complete this question by entering your answers in the tabs below. Req1A Reg 18 Reg 2 Prepare a contribution format income statement for the game last year. Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc. Contribution Income Statement otal Per Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income 0 $ 0 $ 0 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Compute the degree of operating leverage. Degree of operating leverage