Sally and Rocky play a game where Sally can choose Left or Right and Rocky can choose Up, Middle, and Down. The associated payoff table is as follows: Rocky Up Middle Down Sally Left (7,4) (0,2) (1,10) Right (0,0) (3,5) (0,4).

A. If Sally and Rocky were making these decisions simultaneously with perfect information, what would the Nash equilibria be? Provide the reasoning behind your answer including players’ payoffs. Are there any Pareto Inefficient outcomes? Why? 

B. Convert the simultaneous game into a sequential game using a “game tree”, once where Sally goes first and then again with Rocky going first. Identify any subgame perfect Nash equilibria. Provide the reasoning behind your answer including players’ payoffs. Is there a first-mover or second-mover advantage in either game?  n

Summit Company makes two models of snowboards, the Junior and the Expert. Its basic production information follows: Expert $ 115 Direct materials cost per unit Direct labor cost per unit Sales price per unit 75 615 Expected production per month 4,000 units 9,000 units Summit has monthly overhead of $484,746, which is divided into the following activity pools: $ 136,364 163,020 78,840 106,522 $ 484,746 W Setup costs Quality control Maintenance Engineering Total Junior $92 51 390 The company also has compiled the following information about the chosen cost drivers: Expert 86 Number of setups required Number of inspections Number of machine hours Number of engineering hours Junior 60 975 350 352 675 650 612 Total 146 1,650 1,000 964 Required: 1. Suppose Summit used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. 2. Calculate the production cost per unit for each of Summit's products under a traditional costing system. 3. Calculate Summit's gross margin per unit for each product under the traditional costing system, 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Summit wanted to implement an ABC system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Summit's products with an ABC system. < Prev 7. Calculate Summit's gross margin per unit for each product under an ABC system. 8. Compare the gross margin of each product under the traditional system and ABC. 2 of 2 Next uired: Suppose Summit used a traditional costing system with machine hours as the cost driver. Determine the assigned to each product line. Calculate the production cost per unit for each of Summit's products under a traditional costing system. Calculate Summit's gross margin per unit for each product under the traditional costing system. Select the appropriate cost driver for each activity pool and calculate the activity rates if Summit wanted to system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 5. Calculate the production cost per unit for each of Summit's products with an ABC system. 7. Calculate Summit's gross margin per unit for each product under an ABC system. 8. Compare the gross margin of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 8 Suppose Summit used a traditional costing system with machine hours as the cost driver. Determine the amount of ov assigned to each product line. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Snowboards Junior Snowboards Expert. Total Overhead Cost Overhead Assigned $ $ $ 169,661.10 315,084.90 484,746.00 Required 1 Required 6 < Previ Required 2 > Required 7 2 of 2 Next quired: Suppose Summit used a traditional costing system with machine hours as the cost driver. Determine the amount of assigned to each product line. Calculate the production cost per unit for each of Summit's products under a traditional costing system. Calculate Summit's gross margin per unit for each product under the traditional costing system. Select the appropriate cost driver for each activity pool and calculate the activity rates if Summit wanted to implemen system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 5. Calculate the production cost per unit for each of Summit's products with an ABC system. 7. Calculate Summit's gross margin per unit for each product under an ABC system. 8. Compare the gross margin of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 6 Required 7 Required 8 Required 5 Select the appropriate cost driver for each activity pool and carcurate the activity rates if Summit wanted to implement an ABC system. Note: Round your answers to 2 decimal places. Setup Costs Quality Control Maintenance Engineering Setups Inspections Machine Hours Engineering Hours Required 4 Required 5 < Required 3 < Prev Required 5 2 of 2 > # Next uired: Suppose Summit used a traditional costing system with machine hours as the cost driver. Determine the amount of ove assigned to each product line. Calculate the production cost per unit for each of Summit's products under a traditional costing system. Calculate Summit's gross margin per unit for each product under the traditional costing system. Select the appropriate cost driver for each activity pool and calculate the activity rates if Summit wanted to implement am system. Assuming an ABC system, assign overhead costs to each product based on activity demands. Calculate the production cost per unit for each of Summit's products with an ABC system. Calculate Summit's gross margin per unit for each product under an ABC system. 3. Compare the gross margin of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. Required 5 Required 4 Required 6 Required 1 Required 2 Required 3 Calculate Summit's gross margin per unit for each product under an ABC system. Note: Round your intermediate calculations and final answers to 2 decimal places. Gross Margin Junior Expert < Required 6 Required 8 > www Required 7 Required 8 Required: 1. Suppose Summit used a traditional costing system with machine hours as the cost driver. Determine the amoun assigned to each product line. 2. Calculate the production cost per unit for each of Summit's products under a traditional costing system. 3. Calculate Summit's gross margin per unit for each product under the traditional costing system. 4. Select the appropriate cost driver for each activity pool and calculate the activity rates if Summit wanted to imple system. 5. Assuming an ABC system, assign overhead costs to each product based on activity demands. 6. Calculate the production cost per unit for each of Summit's products with an ABC system. 7. Calculate Summit's gross margin per unit for each product under an ABC system. 8. Compare the gross margin of each product under the traditional system and ABC. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 Required 6 Compare the gross margin of each product under the traditional system and ABC. Note: Round your answers to 2 decimal places. Required 1 Required 2 Gross Margin (Traditional) Gross Margin (ABC) Junior Export < Required 7 Required Required 7 Required 8 Required 8