Alpine luggage has a capacity to produce 200,000 suitcases per year. the company is currently producing and selling 80,000 units per year at a selling price of $ 160 per case. the cost of producing and selling one case follows. variable manufacturing costs $ 64 fixed manufacturing costs 16 variable selling and administrative costs 32 fixed selling and administrative costs 8 total costs $ 120 the company has received a special order for 5,000 suitcases at a price of $ 100 per case. it will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $ 20 per suitcase. the special order would have no effect on total fixed costs. the company has rejected the offer based on the following computations. selling price per case $ 100 variable manufacturing costs 64 fixed manufacturing costs 16 variable selling and administrative costs 20 fixed selling and administrative costs 8 net profit (loss) per case $ (8) required a. what is the impact on profit for the year if alpine accepts the special order? show computations. b. do you agree with the decision to reject the special order? explain. no,

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms.if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.