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Dunder Mifflin is a company that sells paper. Dwight Schrute, an employee at the regional office, notifies his manager of a potential weakness in their

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Dunder Mifflin is a company that sells paper. Dwight Schrute, an employee at the regional office, notifies his manager of a potential weakness in their internal controls over cash disbursements. The manager, Michael Scott, consults with a risk management team and determines that the company's exposure to this specific threat is estimated at $2,000,000, but they estimate that existing controls are 90% effective in preventing the threat. Michael Scott is relieved to hear that his company's controls are so effective ("90% is an A!") and plans an office party to celebrate. Dunder Mifflin's corporate management is considering three alternatives as improvements in their internal control system over cash disbursements. They've enlisted your help to determine which they should implement. Improvement A would cost $120,000 to implement and would reduce the likelihood of the threat to 4%. Improvement B would cost $90,000 to implement and would reduce the likelihood of the threat to 6%. Improvement C would implement both improvements A and B and would cost $140,000 to implement and reduce the likelihood of the threat to 2%. In the space below, clearly show a cost/benefit analysis of each improvement (A, B, C). Also indicate which option this analysis suggests would be best to implement. HTML Editor

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