1. A maker of computer games expects to sell 600,000 games at a price of $46 per game. These units cost $15 to produce. Selling, general, and administrative expenses are $1.3 million and depreciation is $300,000. What is the EBIT break-even point for the number of games sold in this case?
A. $34,783
B. $86,667
C. $41,935
D. $51,613
2. You are about to participate in a private value auction. There will be a total of 10 rational participants in the auction. You have been informed by a higher being that, of the 10 participants, you have the highest private valuation. In which type of auction you are the most likely to win the auction?
a. In a Dutch auction.
b. In a 1st price, sealed bid auction.
c. In an English auction.
d. It depends on the value of the object.
e. It cannot be determined.