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Case 1 Clever, Inc., is a car manufacturer. Its 2018 income statement is as follows: Clever, Inc. Income Statement for the Year Ended December 31,

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Case 1 Clever, Inc., is a car manufacturer. Its 2018 income statement is as follows: Clever, Inc. Income Statement for the Year Ended December 31, 2018 Sales revenue $20,000 Less cost of goods sold 10,000 Gross margin $10,000 Expenses 8.000 Net income $ 2,000 Alexander, Inc., is a car rental agency based in Florida. Its 2018 income statement is as follows: Alexander, Inc. Income Statement for the Year Ended December 31, 2018 Sales revenue $20,000 Expenses 15,000 Net income $ 5,000 During 2018, both Clever, Inc., and Alexander, Inc., incurred a $1,000 fraud loss. 1. How much additional revenue must each company generate to recover the losses from the fraud? 2. Why are these amounts different? 3. Which company will probably have to generate less revenue to recover the losses

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