\ Longes Clothing uses Full Absorption costing for calculating net income and reporting taxes.\ Longes clothing uses straight line depreciation (remember to depreciate the machine in your\ analysis). Fixed overhead costs are allocated based on unites of production using actual\ production. Longes clothing uses a first-in-first-out (FIFO) inventory system. The tax rate is\ 40%, and the company uses a discount rate of 12% to evaluate projects.