Valve company has offered to sell motor 10,000 units of part m-l for $16.50 per unit. if motor accepts the offer, some of the facilities presently used to manufacture part m-l could be rented to a third party at an annual rental of $15,000. additionally, $4 per unit of the fixed overhead applied to part m-l would be totally eliminated. should motor company accept valve company's offer, and why

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game. expert answer