Question

Atrap and Bracken are two rival insurance companies. Atrap has a yearly premium of $7,000 and a deductible of $6,000. Bracken has a yearly premium of $6,000 and a deductible of $5,000. The average expense of surgery is $25,000.

Answer 1

Answer:

b. 900

Step-by-step explanation:

6,000 x 3 = 18,000 how much he makes in 3 years for each person insured before any filed claims

18,000 x 1,000 = 18,000,000 how much he makes from 1,000 people insured before any filed claims

25,000 - 5,000 = 20,000 his average cost for each claim filed for surgical procedures

18,000,000/20,000 = 900 amount of surgical procedures the 1,000 insured people can claim for him to break even