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its fixed overhead costs will be eliminated. If Blanrin Inc. decides to buy
the component instead of manufacturing it, how will the decision affect
the company?
A. Its net income will increase by $8,200.
B. Its net income will increase by $3,800.
C. Its net income will decrease by $3,800.
D. Its net income will increase by $4,400.
8 Rick, a certified accountant, is asked to conduct an audit of the
financial statements of Schenk Ltd. However, the company refuses to
cooperate with Rick and does not provide him with the necessary
information. This makes it impossible for him to carry on with the audit.
In this scenario, which of the following opinions is Rick most likely to
express?
A. Adverse opinion
B. Disclaimer of opinion
C. Unqualified opinion
D. Qualified opinion
9 Susan is a financial manager at Rvetz Corporation. She wants to
evaluate the efficiency with which the company is using its resources.
For this reason, she needs to calculate the operating margin from the
information given below.
Net sales $3,500,000
Cost of goods sold 1,750,000
Office rent 54,500
Selling expenses 350,000
Interest expense 50,000
Other operating expenses 88,500
Which of the following will be the result?
A. 38.4%
B. 35.9%