Rainbow Paints is discontinuing a line of paint that it purchased at $56 less 30% and 10% per 4-L pail. The store's overhead is 50% of cost, and normal operating profit is 25% of cost. If the manager of the store is prepared to accept a loss of one-quarter of the overhead expenses, what markdown rate can the store offer in order to clear out the paint? (Do not round intermediate calculations and round your final answer to 1 decimal place.) Rate of markdown %

Ross has received a special order for 16,000 units of its product at a special price of $23. The product normally sells for $31 and has the following manufacturing costs:    Per unit Direct materials   $ 7 Direct labor     6 Variable manufacturing overhead     3 Fixed manufacturing overhead     10 Unit cost   $ 26   Assume that Ross has sufficient capacity to fill the order. If Ross accepts the order, what effect will the order have on the company’s short-term profit?   Multiple Choice   $48,000 decrease   $112,000 increase   $80,000 decrease   $240,000 increase

Futura Company purchases 75,000 starters from a supplier at $11.10 per unit that it installs in farm tractors. Due to a reduction in output, the company now has enough idle capacity to produce the starters rather than buying them from the supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.20, as shown below: Direct materials Direct labor Supervision Depreciation Variable manufacturing overhead Rent Total product cost Per Unit $ 5.00 3.00 1.80 1.46 2.66 2.40 $ 12. 26 Total $ 135,000 $ 185,000 $ 30,000 If Futura decides to make the starters, a supervisor would be hired (at a salary of $135,000) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $83.000 per period. Required: What is the financial advantage (disadvantage) of making the…