Please ensure a table is submitted like for like - easily readable and to reflect what is needed box for box. Instant great feedback guaranteed will be left!

1 problem - 3 areas to solove

Exercise 5-15 [Algo) Operating Leverage [LOB-1, L05-8] Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 36,400 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $637,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractor Variable expenses consist mostly of payments to this contractor. Required: 1a. Prepare a contribution format income statement for the game last year. 1b. Compute the degree of operating leverage. 2. Management is condentthat the company can sell 44,408 games next year (an increase of 8,008 games, or 22%, 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] Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Incorporated Contribution Income Statement Total Per Unit 0 $ 0Req 1A Req 1B Req 2 Compute the degree of operating leverage. Degree of operating leverageManagement is condent that the company can sell 44,403 games next year (an increase of 8,008 games, or 22%, over last year). Given this assumpon: 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 opemting leverage to compute your answer.) Show less