Jacobs Creek sells dining room tables to Ashley Furniture for a suggested price of $1999 less a trade discount of 40% and an early order discount of 10%. Ashley decides to sell the tables for $2199. During a promotion, Ashley offers a 10% markdown on the tables, so that the planned profit at the sale price is $395.

a. What is the amount of markdown and the reduced selling price? b. What is the amount of overhead expense and the original operating profit? c. What would be the amount of markdown and the rate of markdown required to break even? d. What would be the profit or loss at the sale price if the sale price is set to cost?