please solve all parts

ment3 LO O 1. Normal markup, 85.19% 13-28 Relevant-cost approach to pricing decisions. Stardom Inc. cans peaches for sale to food distribu tors. All costs are classified as either manufacturing or marketing. Stardom prepares monthly budgets. The March budgeted absorption-costing statement of comprehensive income is as follows: Revenue (1,000 crates X $100 a crate) Cost of goods sold Gross margin Marketing costs Operating income Normal markup percentage: $40,000 - $60,000 = 66.7% of absorption cost Monthly costs are classified as fixed or variable (with respect to the number of crates produced for man ufacturing costs and with respect to the number of crates sold for marketing costs): Fixed Variable Manufacturing $20,000 $40,000 16,000 14,000 Marketing $100,000 60,000 40,000 30,000 $10,000 Stardom has the capacity to can 1,500 crates per month. The relevant range in which monthly fixed manu- facturing costs will be "fixed" is from 500 to 1,500 crates per month. Required 1. Calculate the markup percentage based on total variable costs. 2. Assume that a new customer approaches Stardom to buy 200 crates at $55 per crate for cash. The customer does not require any marketing effort. Additional manufacturing costs of $4,000 (for special packaging) will be required. Stardom believes that this is a one-time-only special order because the customer is discontinuing business in six weeks' time. Stardom is reluctant to accept this 200-crate special order because the $55-per-crate price is below the $60-per-crate absorption cost. Do you agree with this reasoning? Explain. 3. Assume that the new customer decides to remain in business. How would this longevity affect your willingness to accept the $55-per-crate offer? Explain. contractor supplies contract