Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 9,600 games last year at a selling price of $65 per game. Fixed expenses associated with the game total $96,000 per year, and variable expenses are $45 per game. Production of the game is entrusted to a printing contractor. 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 11,616 games next year (an increase of 2,016 games, or 21%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year