Sadie tells the salesperson that she is a marathoner and needs shoes for distance. The salesperson suggests that Sadie buy a pair of Mercury running shoes. Mercury shoes are actually designed for walking rather than running. On mile 21 of her first training run, the shoes start to wear through in the heel.
1. What type of warranty has been breached?
A) Express warranty.
B) Implied warranty of merchantability.
C) Implied warranty of fitness for a particular purpose.
D) None (No warranty was made 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.)