Answer: B, market.
Explanation: Hope this helps you out. <3
Answer:
a) $2000
b) $1,886.7925
C) $2,036.7925
Explanation:
First, the question states to determine the expected claim cost per policy
Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.
A) Expected Claim Cost per policy
= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)
= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000
Part B: discounted expected claim cost per policy
Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)
=$2,000 ÷ (1 + 0.06)
= $1,886.7925
Part C:: Determine the Fair Premium
Fair Premium is calculated as follows
The discounted policy claim cost + the Processing Cost per application + The fair profit loading
= $1,886.7925+ $100+50 = $2,036.7925
Answer:
$651,300
Explanation:
Cost of an item of property, plant and equipment comprises of purchase price and any cost directly attributable to bringing the asset to the location and condition for operation as intended by management.
<u>Calculation of the cost of purchase of the land:</u>
Purchase price $ 620,000
Demolition of the old building $ 23,000
Land preparation and leveling $ 8,300
Cost of purchase of the land $651,300
Consider the demand equation q=20,000 p^(-1.4). if the cost of production is constant at $0.50 per unit $1.75 is the optimal price to maximize profit.
The income maximization system depends on income general sales overall fee. consequently, a firm maximizes earnings while MR = MC, that is the primary order, and the second order depends on the first order. This idea differs from wealth maximization in phrases of length for income earnings and the company's goals.
Calculation,
The demand equation q=20,000 p^(-1.4)
The production constant is $0.50
maximum profit= $1.75
The choicest charge is that charge point at which the total earnings of the seller are maximized. while the rate is just too low the vendor is shifting a big quantity of devices but income is the best possible combination of income. Examples of income maximizations like this encompass: discovering less expensive raw materials than those presently used. discover a provider that gives better charges for inventory purchases. locate product resources with decreased delivery prices. lessen labor expenses.
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