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Question
Betty DeRose, Inc. prepared the following projected income statement information for 2011:
•Contribution margin $900,000
•Fixed costs 780,000
• Net income 120,000
Assume that actual sales in 2011 were 20% higher than projected.
Calculate the net income earned by Betty DeRose, Inc. for 2011.
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Which of the theoretical perspective of regulation reviewed in this chapter might best explain the existence of laws that prohibit insider trading?
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