Alvarado company sells a machine for $8,050 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. with sales being made evenly throughout the year, the company sells 540 machines in 2014, its first year of operation (warranty costs are incurred half in 2014 and half in 2015). as a result of product testing, the company estimates that the warranty cost is $395 per machine ($172 parts and $223 labor).

assuming that actual warranty costs are incurred exactly as estimated, what is the balance in the warranty liability account at december 31, 2014?

2. a box contains 50 slips of paper. forty of the slips are marked $0, 8 of the slips are marked $20, 1 slip is marked $100, and the last one is marked $500. find the expected net winnings of a person who pays $10 to randomly select one slip of paper. interpret.

Companies under market structures are independent

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.