Listed below are costs found in various organizations.
for each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. if it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.
1. direct labor
2. executive salaries
3. factory rent
4. property taxes, factory.
5. boxes used for packaging detergent produced by the company
6. salespersons' commissions
7. supervisor's salary, factory
8. depreciation, executive autos.
9. wages of workers assembling computers
10. insurance, finished goods warehouses
11. lubricants for production equipment.
12. advertising costs
13. microchips used in producing calculators.

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.