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 45.872 games next year (an Increase of 8,272 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.) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc., Contribution Income Statement Total Per Unit Reg 1A Reg 1B Req 14 Req 1B Req2 Compute the degree of operating leverage. Degree of operating leverage Reg 14 Reg 1B Reg 2 Management is confident that the company can sell 45,872 games next year (an increase of 8,272 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.) Show less a. Net operating income increases by b. Total expected net operating income 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 45.872 games next year (an Increase of 8,272 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.) Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Prepare a contribution format income statement for the game last year. Magic Realm, Inc., Contribution Income Statement Total Per Unit Reg 1A Reg 1B Req 14 Req 1B Req2 Compute the degree of operating leverage. Degree of operating leverage Reg 14 Reg 1B Reg 2 Management is confident that the company can sell 45,872 games next year (an increase of 8,272 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.) Show less a. Net operating income increases by b. Total expected net operating income