Kanye, alex, melissa, and sheila are trying to form a band. they each have some basic skills on most instruments, so their current plan is for each of them to rotate among vocals, guitar, bass, and drums. after a year of practice and rehearsals, the band still sounds awful. kanye can\'t keep a steady beat when on bass or drums, melissa sounds terrible at everything except the bass, nobody except alex can remember all the chords on guitar, and even sheila\'s own mother thinks her singing sounds like a dying cow. at their current rate, they expect it will be several years before they are good enough to land their first paid performance. none of them have enough money saved up to last that long. they all know you are taking economics and ask your advice. what would you say to them?

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.)