The formula for the net profit margin percentage is: Net profit margin percentage = Net income ÷ Sales.
Answer the following statement true (T) or false (F)
True
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A country subsidiary is a major structural device employed today to enable a corporation to acquire geographic knowledge
Indicate whether the statement is true or false
When searching for unrecorded liabilities at the end of an accounting period, the accountant would search all of the files except
a. the purchase requisition file b. the cash receipts file c. the purchase order file d. the receiving report file
In which of the following situations would a CPA be considered independent?
a. A CPA's brother is the Vice-President of Sales at the CPA's audit client. b. A CPA's father was a salesman at the CPA's audit client and now a major portion of the father's pension fund is invested in the audit client. c. A CPA's cousin works as a web-site designer at the audit client. d. A CPA's son works summers at the audit client and has earned 10 shares of stock in the audit client.
Safety Products currently outsources an electrical switch that is a component in its sprinkler systems. The switches are purchased for $20 each. The company is considering making the switches internally and has conducted a study to determine the costs involved. The costs below are projected annual production costs: Unit-level material cost$3 Unit-level labor cost$2 Unit-level overhead$1 Batch-level cost (5,000 units per batch)$5,000 Product-level supervisory salaries$37,500 Allocated facility-level costs$20,000 Assume that the company needs 15,000 of the switches, which would be produced in three batches. Assume also that the company will still be operating within the relevant range. If Safety decides to make the parts under these conditions, the total relevant costs will be:
A. $142,500. B. $162,500. C. $105,000. D. $132,500.