Consider a market with two firms, Krispy Kreme Doughnuts (KK) and Dunkin' Donuts (DD), that produce donuts. Both firms must choose whether to charge a high price ($1.25) or a low price ($0.85) for their donuts. These price strategies with corresponding profits are illustrated in the payoff matrix to the right. Krispy Kreme's profits are in red and Dunkin' Donuts' are in blue. Krispy Kreme's dominant strategy is to pick a price of $1.25 , and Dunkin' Donuts' dominant strategy is to pick a price of $0.85 . What is the Nash equilibrium for this game? A. Krispy Kreme will choose a price of $1.25 and Dunkin' Donuts will choose a price of $0.85. B. Krispy Kreme and Dunkin' Donuts will both choose a price of $1.25. C. Krispy Kreme will choose a price of $0.85 and Dunkin' Donuts will choose a price of $1.25. D. Krispy Kreme and Dunkin' Donuts will both choose a price of $0.85. E. The game has no Nash equilibrium.

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inventory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a.prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price.b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1

When making broccoli cream soup, the broccoli and aromatics should be a. burned. b. simmered. c. puréed. d. sweated.

Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.