Column (m).-Enter the total of all entries in this column.

Line 5.-Enter the amounts shown in line 3, columns (i) and (m), respectively, from Part I.

Line 6.-Add lines 4 and 5 in columns (i) and (m), respectively. Line 6, column (i) represents the annualized effect on revenues of all price increases. This is the amount which must be cost-justified, and it must meet the 6 percent limitation. Line 6, column (m) is the actual amount of revenue from price changes that occur in the budgeted fiscal year which you have realized (if your budg. eted fiscal year has been completed) or expect to realize (if your budgeted fiscal year has not yet begun or is in prog. ress).

Use of Schedule A with Form S-52.After you complete Schedule A, use the information derived to complete your report of price increases, your quarterly report, your annual report, and/or your self-monitoring check. Details on the specific uses of this information are in the

general instructions for this schedule and in the instructions for the Form S-52 (Rev. July 1973). Additionally, a few specific points of interest follow:

If You Use the September 1972 Revision of Form S-52-Calculate the entry for item 18(b) as follows: Divide the amount shown in Schedule A, line 6, column (i) by the amount shown in Form S-52, item 14, column (a). This is the annualized percentage increase in aggregate annual revenues due to price in

creases.

If You Use the July 1973 Revision of Form S-52

(1) The amount shown in Schedule A, line 6, column (i) should be equal to the amount shown in Form S-52, item 59, when you request an exception or when an exception has already been granted for the budgeted fiscal year.

(2) When you complete Part VIII of Form S-52, show the same amount in item 75 as you show in Schedule A, line

6, column (i). Also, show in Form S-52, item 77, the same amount that you show in Schedule A, line 6, column (m). For All Revisions of Form S-52—

(1) The amount shown in Schedule A, line 6, column (i), is the amount which must not exceed your justified allowable costs, or 6 percent of the aggregate an nual revenues realized in the last fiscal year, whichever is less, except when you have been granted an exception. If you have been granted an exception for the budgeted fiscal year, then the amount of annualized price increase revenues (Schedule A, line 6, column (i)) must not exceed the sum of the exception granted and the lesser of justified allowable costs, or 6 percent of the aggregate annual revenues realized in the last fiscal year.

(2) The amount shown in Schedule A, line 6, column (m), is the amount of price increase revenue which you will actually realize. This amount can never be greater than the amount shown in Schedule A, line 6, column (i).

4 Total price increase revenues from third-party cost-reimbursers

5 Net price increase revenues from payers other than cost-reimbursers (from line 3 on the other side of this schedule)

• When the LFY price has been adjusted for intensity (by multiplying the price times 1.02), place an asterisk (*) after the price. See the Instructions for completing this schedule for details on which prices are eligible for adjustment.

Signature of preparer

[38 FR 11414, May 7, 1973, as amended at 38 FR 15936, June 19, 1973; 38 FR 19802, July 24, 1973]

"Act" means the Economic Stabilization Act of 1970, as amended.

"Annual sales or revenues" means the total gross receipts of a firm during its most recent fiscal year, from whatever source derived, except that it does not include gross receipts of or from a foreign branch or division of such a firm, or the gross receipts of or from a wholly or partially owned foreign entity such as a corporation, partnership, joint venture, association, trust, or subsidiary, if the gross receipts of such foreign entity, branch, or division are derived primarily from transactions with other foreign firms. A foreign entity, branch, or division is one located outside the several States and the District of Columbia. However, gross receipts of domestic entities from U.S. export sales and from sales to firms in the Commonwealth of Puerto Rico are included in the determination of annual sales or revenue. For the purposes of Subpart F, "annual sales or revenues" means total gross receipts as determined above with respect to sales of food.

"Appropriate employee unit” means a group composed of all employees in a bargaining unit or in a recognized employee category. Such bargaining unit or employee category may exist in a plant or other establishment or a department thereof, or in a company, or in an industry, or in a government unit or in an agency, or instrumentality thereof, and shall be determined so as to preserve, as nearly as possible, contractual or historical wage and salary relationships.

"Base period" means any two, at the option of the person concerned, of the following fiscal years: That person's last 3 fiscal years ending before August 15, 1971, and any fiscal year, other than the fiscal year for which compliance is being measured, completed on or after that date. In determining a base period for the purpose of computing a profit margin during a base period, a weighted average of its profits during the 2 years chosen shall be used.

"Council" means the Chairman of the Cost of Living Council established by Executive Order 11615 (3 CFR, 1971 Comp., p. 199) and continued under the provisions of Executive Order 11695, or his delegate.

"Employer" means a firm which employs one or more persons who receive a wage or salary.

"Exception" means a waiver directed to an individual firm in a particular case which relieves it from the requirements of a rule, regulation, or order issued pursuant to the act.

"Exemption" means a general waiver of the requirements of all rules, regulations, and orders issued pursuant to the act.

"Firm" means any person, corporation, association, estate, partnership, trust, joint-venture, or sole proprietorship or any other entity however organized including charitable, educational, or other eleemosynary institutions, and the Federal and State and local governments. For purposes of this definition, a firm includes any entity listed in the preceding sentence that is part of or is directly or indirectly controlled by the firm. A person will be deemed to control any firm which is controlled directly or indirectly by such person, his spouse, children, grandchildren, or parents.

"Food" means items produced or manufactured for human ingestion except alcoholic beverages, tobacco products, or drugs. An item is not food within the meaning of this definition until it enters into a processing stage where it is intended for use as or in a product for human ingestion.

"Food operations" means the growing, harvesting, manufacture, production, raising, packaging, storage, distribution, transportation, or sale of food or the rendering of administrative or support functions for such activities.

"Nonprofit organization" or one which is "not operated for profit” is a firm which is defined as a nonprofit organization in section 501(c) and is exempt under section 501(a) of the Internal Revenue Code of 1954, amended.

"Pay adjustment" means a change in wages and salaries which includes all forms of direct and indirect remuneration or inducement to employees by their employers for personal services, which are reasonably subject to valuation, including but not limited to: Vacation and holiday payments; bonuses; layoff and severance pay plans; supplemental unemployment benefits; night shift overtime, and incentive pay; employees contributions for insurance plans (but not including Federal public plans, e.g.

old-age, survivors, health, and disability insurance under the social security system, Railroad Retirement Acts, Federal Insurance Contributions Acts, Federal Unemployment Tax Acts, and Civil Service Retirement Acts, and not including any workman's compensation or unemployment insurance plan pursuant to State law whether the participation of the employer is optional or obligatory), savings, pension, profit sharing, annuity funds, and other deferred compensation and welfare benefits (including payments to or on behalf of retirees); payments in kind; job prerequisites: housing allowances; uniform and other work clothing allowances (but not including employerrequired uniforms and work clothing whether or not for safety purposes); cost-of-living allowances; commission rates; stock options; fringe benefits; and benefits which result in more pay per hour or other unit of work or production (e.g. by shortening the workday without a proportionate decrease in pay). Notwithstanding the foregoing definition of pay adjustment, contributions by any employer for:

(a) Any pension. profit sharing, or annuity and savings plan which meets the requirements of section 401(a), 404(a) (2), or 403(b) of the Internal Revenue Code of 1954;

(b) Any group insurance plan; or

(c) Any disability and health plan; are not to be included in wages and salaries unless such contributions are determined to be unreasonably inconsistent with the standards issue pursuant to section 203(b) of the Act. Further, notwithstanding the foregoing definition of pay adjustment, pay adjustments paid to persons earning less than $2.75 per hour to increase their compensation up to $2.75 per hour are not to be included in wages and salaries.

"Pay Board" means the Board established pursuant to section 7 of Executive Order 11627 (3 CFR, 1971 Comp., p. 218).

"Prenotification" means notice submitted to the Price Commission or Pay Board relating to a proposed price adjustment or pay adjustment.

"Price adjustment" means an increase in the unit price of property or services or a decrease in the quality of substantially the same property or services.

"Price Commission" means the Commission established pursuant to section 8 of Executive Order 11627.

"Professional athlete" means any individual who undertakes or engages in, as a means of livelihood or for economic gain, either individually or as an employee of a professional sports organization, competitive sporting events requiring physical agility or strength.

"Profit margin" means the ratio that operating income (net sales less cost of sales and less normal and generally recurring costs of business operations, determined before nonoperating items, extraordinary items, and income taxes) bears to net sales as reported on the person's financial statement prepared in accordance with generally accepted accounting principles consistently applied.

"Public utility" means a person that furnishes service to the public or a recognized segment of the public, whether or not that person is under the jurisdiction of a regulatory agency, including gas, electric, telephone, telegraph, public transportation by vehicle or pipeline, water, and sewage disposal services, but not including water or sewage disposal services furnished by a government agency or instrumentality.

"Real estate with improvements" means land upon which there is a structure, dwelling, or other building. It does not mean land on which roads, water, sewer, or drainage facilities have been constructed.

"Regulatory agency" means any commission, board, or other legal body existing under law which has jurisdiction to regulate prices and services offered by a public utility.

"Retail firm" means a firm whose annual sales or revenues are primarily from the sale of goods to ultimate consumers.

"Security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, or, in general, any interest or instrument commonly known as a "security," or any certificate of interest or participation in temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.

"State and local governments” means the several States and the District of