Eco Strip Inc. makes a paint remover which is made up of two direct materials, X and Y. The standard costs and standard quantities are as follows. Each gallon of paint remover requires 0.3 gallons at $4.00 per gallon of material X and 0.7 gallons at $6.00 per gallon of material Y. During April, Eco Strip produced 50,000 gallons of paint remover, used 17,000 gallons at $4.25 per gallon of material X, and used 38,000 gallons at $5.90 per gallon of material Y. What are the mix and yield variances for material X for the month of April? a. $2,000 U; $6,000 U.
b. $3,000 U; $5,000 U.
c. $10,000 U; $2,000 F.
d. $10,000 F; $18,000 U.
e. None of these.

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?