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Allushta [10]
3 years ago
8

Sufficient Dwelling Coverage? Colton Gentry of Lancaster, California, has owned his home for ten years. When he purchased it for

$178,000, Colton bought a $160,000 homeowner's insurance policy. He still owns that policy, even though the replacement cost of the home is now $300,000.a. If Colton suffered a $15,000 fire loss to the home, what percentage of the loss would be covered by his policy? Round your answer to one decimal place 89.9 What dollar amount of the loss would be covered by his policy? Enter the amount of the loss as a positive number. Round your answer to the nearest dollar. $13485 b. How much insurance on the home should Colton carry now to be fully reimbursed for a fire loss? Round your answer to the nearest dollar. $125000 Hide Feedback Incorrect Check My Work (No more tries available)
Business
1 answer:
Shtirlitz [24]3 years ago
5 0

Answer:

a. $17,978

b. $300,000

Explanation:

Conditions

  • The  cotton country of lancaster, california has owned his home for ten years
  • purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy
  • the replacement cost of the home is now $300,000

a.    hence,

the proportion of the house insured = \frac{InsuranceAmount}{PriceOfThe Home} \times 100%

                                                             = \frac{160000}{178000}\times 100

                                                             =   89.89%

Percentage amount covered by the policy

= proportion of the house insured = 89.89%

Amount covered by the policy in dollars

= $20,000 × 89.89%

= $17,978

b

Amount of insurance on the home that cotton should now carry to be fully reimbursed for a fire loss  = current value of the home

= $ 300,000

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The following two graphs show the markets for smartphones in Sweden and Norway. Use the graphs to answer the questions that foll
zalisa [80]

Answer:

Assume there are no transportation costs. With trade, the price of $22.5 brings about balance in exports and imports. At this price, 600 smartphones are traded. With trade, Sweden produces 900 smartphones and consumes 300 smartphones, and Norway produces 300 smartphones and consumes 900 smartphones.

Now suppose the per-unit transportation cost from Sweden to Norway is $5. With trade, the transportation cost changes the price of smartphones in Sweden to $25 and in Norway to $25. Sweden will produce 800 smartphones and consume 400 smartphones, thus exporting 400 smartphones. Norway will produce 400 smartphones and consume 800 smartphones, thus importing 400 smartphones.

Explanation:

With no transportation costs, Sweden shall export smartphones and Norway shall import smartphones because the market price is lower in Sweden than in Norway.

The demand and supply functions for smartphones in Sweden, derived from the given values, are:

Q_{D} = 1200 - 40P\\

Q_{S} = 40P

The export supply (ES) equation is:

ES = Q_{S} - Q_{D}

ES = 40P - (1200 - 40P)

ES = 80P - 1200

The demand and supply functions for smartphones in Norway, derived from the given values, are:

Q_{D} = 1800 - 40P

Q_{S} = 40P - 600

The import demand (ID) equation is:

ID = Q_{D} - Q_{S}

ID = 1800 - 40P - (40P - 600)

ID = 2400 - 80P

The equilibrium price and quantity traded is determined where ES = ID.

80P - 1200 = 2400 - 80P

This simplifies to P = 22.5

Q = 2400 - 80(22.5) = 600

Next, a transaction cost of $5 per unit is imposed from Sweden to Norway. This changes the ES function as follows.

New ES = 80(P - 5) - 1200

New ES = 80P - 1600

The new equilibrium is where New ES = MD.

80P - 1600 = 2400 - 80P

This simplifies to P = 25

Q = 80(25) - 1600 = 400

7 0
3 years ago
XYZ Inc. brings together specialists from production, marketing, and finance from around the world, and gives each such team the
koban [17]

Answer:

Cross- functional team

Explanation:

Cross- functional team, is the team which is defined as the group of people who came together with the different functional expertise of working against the common goal.

This team may involve the people from human resources, finance, operations and marketing department.

It occurs when the specialist from different areas are put on the same team. So, in this case, XYZ bring together the specialist, which implies that the firm is creating the team of cross- function.

6 0
3 years ago
Q 6.29: Accurate Auditing is conducting an inventory count for Blake Industries. Blake intermingles empty boxes with full boxes
Rasek [7]

Answer:

The asset would have been overestimated

Explanation:

An inventory account deals with assigning values to all the items or goods that are involved in the production process ranging from raw goods, processed goods to market-ready goods.

<em>An inventory represents an asset to a company. Hence, the presence of empty boxes in the storeroom if otherwise taken as full boxes will lead to an overestimation of the asset unless they are discovered.</em>

3 0
3 years ago
Each parcel of land in a new development is selling for $15,000 and the total project revenue is estimated to be $5,000,000. The
USPshnik [31]

Answer:

The release price for each parcel is $13,215.

Explanation:

Release price for each parcel = [3500000/(5000000*80%)]*15000

                                                  = $13,215

Therefore, The release price for each parcel is $13,215.

5 0
3 years ago
Ms. Pay, who has a 40.8 percent marginal tax rate on interest income (37 percent income tax 3.8 percent Medicare contribution ta
Butoxors [25]

Answer:

After tax cash flow    $44,281.60

After tax cash flow   ($30,518.40)

After tax cash flow   $8856.32

Explanation:

In the first case when the interest income of $74,800 ,the after-tax cash flow would be taxed as follows"

before tax cash flow   $74,800.00

tax at 40.8%*$74,800 ($30,518.40)

After tax cash flow      $44,281.60  

If the entire interest income is re-invested after tax cash flow is computed thus:

before tax cash flow   $0

tax at 40.8%*$74,800 ($30,518.40)

After tax cash flow      ($30,518.40)

If the entire interest income represents the original  issue discount,which is the difference between the face value and the issue price,after tax cash  flow is computed thus:

The OID is taxable as if it accrues over the duration of the investment(bonds),hence a portion of the OID would be assessed to tax each year (assume the duration of investment is 5 years)

Annual portion of OID=$74,800/5

before tax cash flow    $14,960 .00

tax at 40.8%*$74,800  ($6103.68 )

After tax cash flow         $8856.32

After tax cash flow      $44,281.60  

3 0
3 years ago
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