The following are the accounts in the books of the Home Office by and the Branch:

Home Office Book

• Allowance for Mark-up, beg bal$10,000
• Returns($1,875)

Branch Book

• Merchandise Inv, beg bal $22,700
• Shipment from Home Office $29,040
• Purchases $40,000
• Cost of Sales ($64,000)
• Returns to Home Office ($7,500)

The branch uses perpetual inventory system. Merchandise comes from the home office and outside suppliers.

Inventory end of the year of the branch includes $6,000 worth of goods from outside suppliers.

As per home office record, (1) what is the mark-up rate on the shipment? and; (2) what is the cost of sales of the branch?