An incomplete absorption costing income statement and an incomplete variable costing income statement for April 2016 appear below. Standards allow 2 pounds of material per unit of output, 5 direct labor hours per unit of output, and $.60 per direct labor hour in variable overhead cost. Absorption Costing Income Statement Current Year Variable Costing Income Statement Current Year Sales (1500 units) Sales $18,750 Less: COGS: Less: Variable Costs: BI -0- DM & DL VOH applied 4,950 FOH applied Available for sale: Less: EI $1,398 Unadjusted COGS Adjustments: All VC variances Production volume variance -$504 FOH price variance -$46 Adjusted COGS $13,781 Gross margin BI Variable costs $12,406 Available for sale Less: EI Mfg. costs before adjustments: Adjustments: Adj. Var. COGS: Other Var. Costs $2025 Total variable cost Contribution margin Less Period Costs: Less: Fixed costs: Variable Fixed $525 Net Income $2,419 Manufacturing Other Net Income
1. Gross margin: $
2. Goods available for sale: $ $
3. Direct labor hours:
4. Units Manufactured:
5. All variable cost variances:$
6. Variable cost net income: $
7. Budgeted FOH application rate: $
8. Units in ending inventory:
9. Variable nonmanufacturing costs: $
10. Unit selling price:

Ms. sophia jones, the company president, has heard that there are multiple breakeven points for every product. she does not believe this and has asked you to provide the evidence of such a possibility. some information about the company for 2017 is as follows:

Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.

Evaluate a real situation between two economic actors; it could be any scenario: two competing businesses, two countries in negotiations, two kids trading baseball cards, you and another person involved in an exchange or anything else. use game theory to analyze the situation and the outcome (or potential outcome). be sure to explain the incentives, benefits and risks each face.