The comparative statements of Crane Company are presented here. CRANE COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $1,549,400 $1,435,000 Cost of goods sold 867,000 824,920 Gross profit 682,400 610,080 Selling and administrative expenses 410,000 392,780 Income from operations 272,400 217,300 Other expenses and losses Interest expense 18,040 16,400 Income before income taxes 254,360 200,900 Income tax expense 76,308 60,270 Net income $ 178,052 $ 140,630

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 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 58,880 games next year (an increase of 12,880 games, or 28%, 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.)