Answer:
$119,400
Explanation:
The computation of the net income that should be distributed to Emmett is as follows:
<u>Particulars Emmett Sierra Total</u>
Net income $200,000
Salary $48,000 ($48,000)
Balance left $152,000
Interest at 8% $2,000 $11,200 ($13,200)
($25,000 × 8%) ($140,000 × 8%)
Balance left $138,800
Balance allocation $69,400 $69,400
Share of profit $119,400 $80,600
Answer:
Health; automobile.
Explanation:
In Insurance, risk tolerance refers to the willingness of an individual or organization to take a risk in business transactions in order to get a potentially positive reward.
Simply stated, risk tolerance in insurance is the willingness of an insured individual to increase his or her Self-Insured Retentions (SIRs) or deductibles by the insurer. For instance, the high risk associated with investments such as stocks, high-yield bonds, is often perceived by investors to be worth the higher reward such investment brings.
Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.
This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.
In this scenario, David has just joined a new company. His employer offers a number of different insurance policies as one of its employee benefits. For example, his employer’s health insurance covers prescription drugs and immunizations. David will also be receiving automobile insurance at no cost from his employer.
Answer:
the minimum acceptable price of this special order is $410.
Explanation:
Minimum acceptable price for the special order is the price that gives a Incremental<em> contribution margin of zero</em> or <em>a price that covers all costs related to supporting the special offer</em>.
Since the company has <em>excess capacity</em>, ignore the fixed costs as these are irrelevant for this decision
Costs to Provide for the Special Offer : Minimum acceptable price
Direct materials $150
Direct labor $60
Manufacturing support $105
Marketing costs $95
Minimum acceptable price $410
