Reg 1A Req 1B Reg 2 Prepare a contribution format income statement for the game last year. Magic Realm, Incorporated Contribution Income Statement Total Per Unit Management Is condent that the company can sell 42:164 games next year (an increase of 8:964 games, or 2?%, 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 last a. Net operating income increases by b. Total expected net operating income Magic Realm, Incorporated. has developed a new fantasy board game. The company sold 33.200 games last year at a selling price of $64 per game. Fixed expenses associated with the game total $581,000 per year. and variable expenses are $44 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 'l-a. Prepare a contribution format income statement for the game last year. 'l-b. Compute the degree of operating leverage. 2. Management is condent that the company can sell 42,164 games next year [an increase of 8,964 games. or 27%, over last year]. Given this assumption: a. What is the expected percentage increase in net operating income for next year? b. 1What is the expected amount of net operating income for next year":I (Do not prepare an income statement: use the degree of operating leverage to compute your answen} Complete thls question by entering your answers In the table below. Answer Choices. Administrative expenses Advertising Beginning merchandise Inventory Commissions Cost of goods sold Depreciation Direct labor Direct materials Ending merchandise Inventory Fixed expenses Indirect labor Indirect materials Purchases Sales Selling expenses Variable expenses