Required:$1-$a$.$ Prepare a contribution format income statement for the game last year$\mathrm{.}1-$b$.$ Compute the degree of operating leverage$\mathrm{.}2.$ Management is confident that the company can sell $60,960$ games next year $($an increase of $12,960$ games, or $27\%,$ 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.$)$ Please show work i want to actually understandMagic Realm, Incorporated, developed a new fant$$sy board game and sold $48,000$ units last year at a selling price of $$63$ per game. Fixed expenses associated with the game are $$864,000$ per year, and variable expenses are $$43$ per game. Production of the game was outsourced to a printing contractor, so 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 $60,960$ games next year $($an increase of $12,960$ games, or $27\%,$ 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.$)$

Complete this question by entering your aftswers in the tabs below.

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Prepare a contribution format income statement for the game last year.Req $1$A

Req $1$B

Req $2$

Prepare a contribution format income statement for the game last year.

$\backslash$table$[[,$Magic Realm, Incorporated$],[,$Contribution Income Statement$],[,$Total,Per Unit$],[,,],[,,],[,,],[,,],[,,],[,,]]$operating leverage to compute your answer.$)$

Complete this question by entering your answers in the tabs below.

Req $1$A

Req $1$B

Req $2$

Compute the degree of operating leverage.

Degree of operating leverageoperating leverage to compute your answer.$)$

Complete this question by entering your answers in the tabs below.

Req $1$A

Req $1$B

Req $2$

Management is confident that the company can sell $60,960$ games next year $($an increase of $12,960$ games, or $27\%,$ 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.$)$

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$\backslash$table$[[$a$.$ Net operating income increases by$,\%$