Correct. Clever, Inc., would have to generate up to another $$10,000,$ calculated as follows, to recover the loss from the fraud:

With a profit margin of $10$ percent, and especially being a manufacturing company, it could take up to another $$10,000$ in revenue for Clever, Inc., to recover the $$1,000$ fraud loss.

Alexander, Inc., would have to generate no more than another $$4,000,$ calculated as follows, to recover the loss from the fraud:

Because its profit margin is $25$ percent, and because it is a service firm with no cost of goods sold, it would not take more than another $$4,000$ in revenue for Alexander, Inc., to recover the $$1,000$ fraud loss.

These amounts are different because the profit margins of these companies are different. Clever, Inc., is a manufacturing company, and for every $$1,000$ of net income it must generate $$10,000.$ On the other hand, Alexander, Inc., must generate no more than $$4,000$ for each $$1,000$ lost from the fraud. It is usually easier for a service business with a higher profit margin to recover from fraud losses than it is for manufacturing companies, such as Clever, Inc., that must generate more money to recover fraud losses.

HOW DO YOU FIGURE OUT HOW MUCH MORE REVENUE IS NEEDED TO COVER THE COST OF THE LOSS STEP BY STEP