On August 1, 2018, Juarez Corporation adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2019, but had not yet occurred as of January 31, 2019. On January 31, 2019, Juarez's fiscal year-end, the following information relative to the discontinued division was provided: Operating loss Feb. 1, 2018 to Jan. 31, 2019 $425,000 Estimated operating losses, Feb. 1 to June 30, 2019 90,000 Excess of book value over fair value less cost to sale of assets, at Jan. 31, 2019 65,000 Juarez's income tax rate is 35%. In its income statement for the year ended January 31, 2019, Juarez would report income (loss) from discontinued operations of:

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.)