Answer:
It is a result of adverse selection
Explanation:
The economic problem in this story is adverse selection. As in this the person who take the insurance drive uselessly and carelessly . In Coverall, Inc., an insurance company's case insurance company increases premium amount in order to cover this type of customer. It is a result of adverse selection.
A banker's acceptance is the payment guaranteed by a bank for a time draft that is payable to a seller of the goods.
A banker's acceptance is a short-term investment plan that is created by a company or firm with a guarantee from a bank. It is important that the company or firm is a non-financial firm. It is a guarantee that the bank gives that a buyer will pay the seller the amount at a future date. A good rating is a prerequisite for obtaining the banker's acceptance.
This is very useful, especially during foreign trade. During foreign trade, the creditworthiness of the importer is not known. The period of the banker's acceptance is usually lesser than 180 days. These acceptances are traded at discounts from the face value in the secondary markets. So, the banker's acceptance acts as a negotiable time draft.
This guarantee from the bank is a written promise by the bank to the seller to pay the sum specified if the buyer is not able to do so. This promise is backed by the bank so the seller feels confident in exporting his goods. As it is safe and liquid, the return on the banker's acceptance is low.
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Given that Jenny earned $44,500 in 2016.
Her contribution to the Social Security is given by: 6.2% of $44,500 = 0.062 x 44500 = $2,759
Her employer's contribution to the Social Security is given by: 6.2% of $44,500 = 0.062 x 44500 = $2,759
Her contribution to the medicare is given by: 1.45% of $44,500 = 0.0145 x 44500 = $645.25
Her employer's contribution to the Social Security is given by: 1.45% of $44,500 = 0.0145 x 44500 = $645.25
Therefore, her total FICA tax is 2(2,759) + 2(645.25) = $5,518 + $1,290.50 = $6,808.50
Answer:
$135
Explanation:
Given:
Total clients = 1700
Membership dues = $45
Increase in monthly dues = $1
Loss of clients per dollar increase = 7 clients
Thus,
let x be the number of dollar increases
therefore,
clients lost will be 7x
so the revenue function will be
f(x) = charges × Number of clients
or
f(x) = ( 45 + x ) × ( 1700 - 7x )
or
f(x) = 90000 - 315x + 1700x - 7x²
or
f(x) = 90000 + 1385x - 7x²
now,
for point of maxima or minima
differentiating with respect to x, we get
f'(x) = 0 + 1385 - 14x = 0
or
14x = 1385
or
x = 98.92 ≈ 98
thus,
to optimize the revenue from monthly dues the club should charge
( $45 + $90 ) = $135
Answer:
Explanation:
Price Per Unit for FE = Selling price - Variable price = 260-186 = $74
Price Per Unit for MB = 365.80-269.88 = $95.92
Price Per Unit for WP = 181.40-127.44 = $53.96
Price per Minute for FE = 74/5.20 = $14.23
Price Per Minute for MB = 95.92/7 = $13.70
Price Per Minute for WP = 53.96/4 = $13.49
The least profitable unit per minute is WP ($13.49 per minute) or $53.96 per unit. So the answer is C
