Refer to the Question Above

question 11

Multiple Choice

Refer to the question above.If the CEO of Bantam Boxers dies and Hartwog fulfills her duties as the executor of the CEO's estate,will Hartwog and Associates,CPAs retain the independence to continue to serve as Bantam Boxers' auditor?

• A) Yes, as long as Hartwog does not make investment decisions for the estate concerning Bantam Boxers
• B) Yes, as long as Hartwog does not participate as the primary or concurring partner on the audit
• C) Yes, as long as the will clearly identifies the parties who will receive Bantam Boxer stock as inheritances and Hartwog does not have the authority to alter this will provision
• D) No

---

Definitions:

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and profit.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.

Sales Mix

The combination of products that a company sells, which can affect profitability due to different margins on each product.

Fixed Expenses

Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.