You win an 'Economics of Thrones' contest and are faced with the following compensation choices:

Option A: Receive a guaranteed payment of $100 thousand.

Option B: Toss a fair 5 sided Phoenix pyramid to determine compensation:

lands Phoenix Head - receive compensation of $50 thousand.
lands Phoenix Tail - receive a compensation payment of $ 25 thousand
lands Phoenix Fire - receive a compensation payment of $ 125 thousand
lands Phoenix Death - receive a compensation payment of $ 500
lands Phoenix Rising - receive compensation payment of $ 500 thousand

What is the expected value of the Phoenix pyramid toss? What option (A or B) would you choose? Explain your economic "risk preference' rationale behind your choice. Give an example of an event that would cause you to change your option choice?

Kubin company’s relevant range of production is 18,000 to 22,000 units. when it produces and sells 20,000 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 4.00 variable manufacturing overhead $ 1.50 fixed manufacturing overhead $ 5.00 fixed selling expense $ 3.50 fixed administrative expense $ 2.50 sales commissions $ 1.00 variable administrative expense $ 0.50 required: 1. for financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. for financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units? 3. for financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. for financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units?