Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman

Exercise 58

After receiving an anonymous note indicating fraudulent activities in the company, XYZ Company officials discover that an employee has embezzled a total of $50,000 over the past year. Unfortunately, this employee used an assumed identity and has suddenly disappeared. The CFO at XYZ wants to know how badly this fraud has hurt the company. If XYZ has a profit margin of 7 percent, approximately how much additional revenue will XYZ have to generate to cover the loss