Ella buys a machine for $8,500, less discounts of 20% and 15%. The overhead expenses are 8% on cost and she plans to make a profit of 60% on the cost. a) What is the regular selling price? b) What is the profit or loss if she offers in markdown of 22%? c) What is the maximum markdown rate she can offer to sell at the breakeven price?

A magazine company has the capacity to print and sell 200,000 magazines per month. It sells each magazine for $4.50 each, has fixed costs about $520,000 per month, and variable cost of $0.50 per magazine. a) Calculate the contribution margin and contribution ratio. b) What sales amount will result in a net income of $21,000? c) What will be the net income at capacity