the basis for dividing the $1,400,000 in overhead expenses. This analysis led to a conclusion that of the $600,000 in estimated income for 2006, $200,000 was generated from the largest 20 projects, and $400,000 was generated from the smallest 100 projects. The results of this analysis are shown in Panel A of Exhibit 2. This was a little hard for me to believe, so I did a second analysis, shown in Panel B. For the second analysis I looked at the largest 60 projects and the smallest 60 projects…
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