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% ofcost, 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 overheadexpenses, what markdown rate can the store offer in order to clear out the paint? (Do not round intermediate calculations and roundyour final answer to 1 decimal place.)Rate of markdown%

Cost price of 4-L Paul = $56 less 30% and 10%If discount rates are x1 and x2, then cost price =…

Answered: Rainbow Paints is discontinuing a line…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge...

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The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. The variable cost of recapping a tire is $9.The company charges $25 to recap a tire. If the Retread Tire Company changes its pricing for recapping a tire from $25 to $31, what effect will the change have on the breakevenvolume?
At the end of the year the production manager is taking inventory and finds 600 units of an older model of invisible fencing that the company no longer manufactures. These obsolete units can be disposed of through their regular channels, thereby incurring variable marketing expenses. What is the lowest price that they should accept for these obsolete units, realizing that if they do not sell them these units will have to be thrown away. (Show all supporting calculations). (NOTE: ignore taxes or other costs not specifically mentioned in the questions.)
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Finn Enterprises manufactures ceiling fans that normally sell for $92 each. There are 320 defective fans in inventory, which cost $60 each to manufacture. These defective units can be sold as is for $20 each, or they can be processed further for a cost of $42 each and then sold for the normal selling price. Stooge Enterprises would be better off by a OA $23,040 not increase in operating income if the ceiling fans are repaired. OB. $9.600 net increase in operating income if the ceiling fans are repaired OC. $23,040 net increase in operating income if the ceiling fans are sold as is OD. $9,600 net increase in operating income if the ceiling fans are sold as is.
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would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a speclal machine to engrave the retail chain's name on the 7,000 units. This machine would cost $14,000. Polaski Company has no assurance that the retall chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 decimal places.) 2. Refer to the original data. Assume again that Polaski Company expects to sell only 39,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 7,000 Rets. The Army would pay a fixed fee of $1.80 per Ret, and it would reimburse Polaskl Company for all costs of production (varlable and fixed) associated with the units. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order.…
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