Answer:
Examples of bad faith include undue delay in handling claims, inadequate investigation, refusal to defend a lawsuit, threats against an insured, refusing to make a reasonable settlement offer, or making unreasonable interpretations of an insurance policy.
Explanation:
You can arrest someone with a bench warrant.
<span>Holding cash simply as a financial reserve is referred to as the "speculative" motive.
</span>Speculative motive refers to a strategy that is utilized by financial specialists/merchants to hold money to make the best utilization of any speculation opportunity that emerges later on. Keeping all cash contributed doesn't appear to be appealing constantly. Keeping up a decent lot of liquidity in one's portfolio is one of the best needs for n investor.
For the most part, financial specialists keep a decent measure of such money with them in order to acquire higher benefits.
Answer:
a) Raise the sales revenue.
b) Decrease the cost of raw materials.
c) Decrease discretionary fixed cost
Explanation:
<em>Return on Investment (ROI) = Divisional Profit Contribution / Assets Employed in the Division</em>
ROI increases when the Divisional Profit Contribution increased and Assets Employed in the Division are reduced.
Answer:
1.
Break even in units = 12100 units
Break even in dollar sales = $484000
2.
Total contribution margin at break even point is $145200.
Explanation:
1.
Break even point is a point, calculated in either units or in dollar value, which provides a point where there is no profit or no loss and the total sales revenue is equal to the total cost.
Break even in units and in dollars can be calculated as follows,
- Break even in units = Fixed costs / Contribution margin per unit
- Break even in dollars = Fixed costs / Contribution margin ratio
- Where contribution margin = Selling price per unit - variable cost per unit
- Contribution margin ratio = Contribution margin per unit / selling price per unit
Break even in units = 145200 / 12 = 12100 units per month
Break even in dollars = 145200 / (12/40) = $484000
2.
Total contribution margin at break even point is $145200 because total contribution margin is the difference between the total sales revenue and total variable cost and at the break even point, the total contribution margin is enough to cover total fixed cost. So, it is equal to the total fixed cost.
