Anational beverage company ran a promotion where consumers could collect "points" by purchasing the company's products, then redeem the accumulated points for items such as baseball caps and t-shirts. one television ad showed a teenager landing a $33.8 million-dollar aircraft in his schoolyard while "harrier jet: 7,000,000 points" flashed across the screen. after the commercial aired, john gathered the 7 million points and asked for a harrier jet, yet the company refused to comply. two days later the points for the jet had changed in the ad from 7,000,000 to 700,000,000. if john sues for the airplane, what is the probable outcome?
a. john wins, because he accepted the company's offer by gathering 7,000,000 points.
b. john wins, because the advertisement showed specific terms, and anyone could accept the offer.
c. john loses, because no reasonable person would believe the advertisement was a serious offer.
d. john loses, because an advertisement is never an offer.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.