In an hour, Henry can wash 20 windows or clean 2 bath tubs. In an hour, Rose can wash 30 windows or clean one bath tub. If their father Dave allows them to trade chores to achieve gains from trade, who will specialize in what?
Henry will wash the windows; Rose will clean bath tubs.
Henry and Rose will both clean bath tubs.
Henry will clean bath tubs; Rose will wash the windows.
There are no gains from trade in this situation.

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.)