Wind fall, a manufacturer of leaf blowers, began operations this year. during this year, the company produced 10,000 leaf blowers and sold 8,500. at year-end, the company reported the following income statement using absorption costing: sales (8,500 × $45) $ 382,500 cost of goods sold (8,500 × $20) 170,000 gross margin $ 212,500 selling and administrative expenses 60,000 net income $ 152,500 production costs per leaf blower total $20, which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced). fifteen percent of total selling and administrative expenses are variable. compute net income under variable costing. multiple choice $146,500 $158,500 $237,500 $206,500 $246,500

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.