A registered representative tells the following to all of his customers: "I am aggressive in my approach; and frequently recommend that securities positions be changed during each day as market conditions fluctuate. While this approach can result in higher commission costs, it produces superior returns." All of the following statements are true about this statement EXCEPT:
A. there is a high risk that the registered representative is churning his accounts
B. the registered representative has made a prohibited performance guarantee to his customers
C. the registered representative appears to be disregarding the requirement to determine suitability for each customer
D. the registered representative has failed to disclose the remuneration received from each transaction, as required under industry rules

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?