What are the trade-offs in a retailer's deciding how much to emphasize private brands rather than manufacturer's brands?

I believe it all eventually came down to the segment of the consumers that they want to target. Private brands tend to had higher cost of production which will increase the end price for the customers. Since manufacturing company could mass produce, the cost would tend to be lower and reduce the end price for the customers.

The correct answer is  "b)  net income overstated, assets unaffected, liabilities understated, and owner's equity overstated."