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4 years ago

What is a cost of avoiding insurance?

Business

2 answers:

Alexxx [7]4 years ago

8 0

A. One may fall into debt if faced with a serious problem

olga55 [171]4 years ago

4 0

Answer:

Cost of avoiding insurance will only occur when there is a accident or major injury. Basically, when there is a related damage which could be covered through insurance and for which no insurance is taken then the person has to pay for the entire fault, whether it be a third party injury, self injury, or in case of vehicle insurance, payment for repair of vehicle.

The net amount is the cost, basically the amount paid for repair - the amount to be paid for the insurance as the premium.

Cost of avoiding insurance is the cost of loss, because of no insurance.

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Jay Bird is a partner in Soundview Partnership. The adjusted basis of his interest is $19,000, of which $15,000 represents his s

Marta_Voda [28]

Answer:

Ordinary income of $6,000; Capital gain of $18,000

Explanation:

Calculation to determine the amount and character of his gain

First step is to calculate the The total gain on the sale of his partnership

Using this formula

Total gain on the sale of his partnership = ( Cash + Relief of his share of liabilities -Basis )

Let plug in the formula

Total gain on the sale of his partnership=$28,000+$15,000+$19,000

Total gain on the sale of his partnership=$24,000

Now let determine the amount and character of his gain

The UNREALIZED RECEIVABLES amount of $6,000 will be the ORDINARY INCOME while the remaining amount of $18,000 Calculated as ($24,000-$6,000) will be the CAPITAL GAIN.

Therefore the amount and character of his gain will be: Ordinary income of $6,000; Capital gain of $18,000

4 0

3 years ago

Aaron has entered into a contract with wilson

swat32

Yes very true !!!!!!

8 0

3 years ago

The slope of the budget line is: negative, since to purchase more of one good means giving up some of the other good. zero, sinc

34kurt

Answer:

Negative, since to purchase more of one good means giving up some of the other good.

Explanation:

A budget line illustrates the number of goods, consumers are able to buy with lower income. Thus the price of goods and customers income to be spent on goods determine the budget line.

The slope of the budget line measures the opportunity cost of consuming Commodity A forgetting Commodity B. In order to get more of Commodity A, the consumer will have reduce the consumption of Commodity B Forefeiting the opportunity to consume Commodity B is the true opportunity cost of Commodity A and this measured by the slope of the budget line.

The slope of the budget line shows the amount of a commodityB the consumer must forfeit to purchase one more unit of a commodity A and the slope is usually Negative.

5 0

4 years ago

Discuss information needs of an organisation

Annette [7]

Answer:

hope you like it

Explanation:

Information can be specified as a compulsory element to be used in decision making in organisations. Decisions taken in organisations can be divided into two categories – strategic and operational, and each type of decision is associated with relevant information needs.

Information Storage

Every organization needs records of its activities to find the cause of problems and proper solutions. Information systems come in handy when it comes to storing operational data, communication records, documents, and revision histories.

8 0

3 years ago

For Crane Company, sales is $1700000 (8500 units), fixed expenses are $480000, and the contribution margin per unit is $60. What

const2013 [10]

Answer:

The Margin of safety is $100,000

Explanation:

Price = Sales / number of units = $1,700,000 / 8500 = $200

Contribution margin ratio is the ratio of contribution margin to the sales value. It measure the ratio that contributes in the recovery of fixed cost and making profit.

Contribution margin ratio = Contribution margin / Sale price = $60 / $200 = = 0.3 = 30%

Break-even is the level of sales at which business has no profit no loss situation.

Break-even point = Fixed cost / Contribution margin ratio = $480,000 / 30% = $1600,000

Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.

Margin of Safety = Total sales - Break-even point = $1,700,000 - $1,600,000

= $100,000

6 0

4 years ago