Classic Products Company manufactures colonial style desks. Some of the company's data was misplaced. Use the following information to replace the lost data:Actual ResultsFlexible Budget VariancesFlexible BudgetSalesminusVolume VariancesStatic BudgetUnits sold500 comma 000500 comma 000457 comma 950Revenues$ 186 comma 650$ 4 comma 400 F(A)$ 6 comma 360 U(B)Variable costs(C)$ 870 U$ 71 comma 160$ 10 comma 100 F$ 81 comma 260Fixed costs$ 36 comma 020$ 3 comma 710 F$ 39 comma 7300$ 39 comma 730Operating income$ 78 comma 600(D)$ 71 comma 360(E)$ 67 comma 620What are the actual variable costs (C)?

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?