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DRG Bakery is planning to produce 100 cookies for Valentine's Day and sell them for $1.40 each. The dough costs $5 per pound to make and they estimate that 10 cookies can be made with every pound of dough. DRG pays $50 per month for the use of a commercial-grade oven in a larger bakery. Please prepare budgeted income statement for DRG.
Problem 1: What is driving the difference between the budgeted income and the actual income?
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Which amortization method of bond premium and discount is applicable to serial bonds?
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Is Margaret's behavior regarding the cost information she provided to Susan unethical? Explain your answer.
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