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son4ous [18]
3 years ago
9

Suppose that there are two employers in Tinytown. CareCo offers a generous health insurance package to all employees, while Apat

hyInc pays slightly higher wages than CareCo, but does not offer health insurance. All else equal, a person who is unhealthy and expects to have high healthcare costs will:
Business
1 answer:
professor190 [17]3 years ago
8 0

Answer:

Choose CareCo.

Explanation:

Given : CareCo offers a generous health insurance package to all employees. ApathyInc pays slightly higher wages than CareCo, but does not offer health insurance.

A person who is unhealthy & expects to have high healthcare expenses : would have issues having direct health insurance from an insurer, based on high risk evaluation. Even if by chance, he/ she gets, it will be at extremely high price i.e premium rates & is likely to have less coverage. So, the person rationally would prefer to protect himself / herself from this huge health expenditure risk, & would protect self & family from catastrophic health costs. He / she would do so by choosing to work for Care Co, which gives generous health insurance to all its employees, by sacrifising higher salary by Apathy giving no health insurance. He/ she is logical as the wage differential is likely to be less than catastrophic health costs

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Hugh is in charge of creating the value proposition for a new start-up company. In order for him to create an effective value pr
marta [7]

Answer:

Who is the target buyer for the offering, what is the offering to the buyer, why is the offering unique for the customer

Explanation:

Since in the given situation, it is mentioned that the hugh developed the value proposition for newly startup company so for developing the effective value proposition he need to answer the question for a consumer that involved about the target purchaser who is offering, the offering made to the buyer and the unique offering made to the customer

These 3 types of questions he need to answer

4 0
2 years ago
The market price of a security is $50. Its expected rate of return is 14%. The risk-free rate is 6% and the market risk premium
Ber [7]

Answer:

The market price of the security is $31.81

Explanation:

In order to calculate the market price of the security if its correlation coefficient with the market portfolio doubles we would have to calculate first the following:

First, calculate the dividend expected after one year with the following formula:

D=P*E(ri)

D=$50*0.14

D=$7

Next, we would have to calculate the beta of the security using the CAAPM Equation:

βi= E(ri)-rf/E(rm)-rf

=0.14-0.06/0.085

=0.9412

Next, we have to calculate the new beta due to the change in the correlation coefficient with the following formula:

β=correlation coefficient/σm*σs

=2*0.941

=1.882

Next, Calculate the new expected return as follows:

E(ri)=rf+βi(E(rm)-rf)

=0.06+(1.882)(0.085)

=0.22

Finally we calculate the new piece of the security as follows:

P=D/E(ri)

=$7/0.22

=$31.81

The market price of the security is $31.81

3 0
2 years ago
McFadden, Inc. has collected the following data. (There are no beginning inventories.)Units produced 600 unitsSales price $150 p
vodka [1.7K]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Units produced 600 units

Direct materials $40 per unit

Direct labor $13 per unit

Variable manufacturing overhead $6 per unit

Variable selling and administrative costs $4 per unit

The variable costing method calculates the cost of goods based on direct material, direct labor, and variable manufacturing overhead.

First, we need to calculate the unitary cost of production:

unitary cost= 40 + 13 + 6= $59

Inventory= 600 units - 450 units= 150 units

Inventory cost= 150*59= $8,850

8 0
3 years ago
On January 3, 2014, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty
likoan [24]

Answer:

Accumulated depreciation for Years 1 - 5 under:

  • the Straight-line method is $90,000.
  • the Units-of-production method is $90,000.
  • the Double-declining-balance method is $86,170.

Explanation:

The total cost of the asset is $90,000 + $3,000 + $1,500 + $4,500 = $99,000, since all the other costs were directly attributable cost and were necessary to bring the asset to usable form.

  • The painting is capitalized because it is the first time Trust Delivery would be using the asset, otherwise it would have been expended
  • Overhauling cost can be regarded as a separate asset, if we were provided with different useful lives - componentization.

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($99,000 - $9,000) / 5 years = $18,000 yearly depreciation expense.

Accumulated depreciation for Years 1 to 5 is $18,000 x 5 years $90,000.

The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

At Year 1, depreciation expense (DE) is: ($99,000 - $9,000) / 100,000 miles x 22,500 miles = $20,250/year

Accumulated depreciation for the first four years is $20,250 x 4 years = $81,000.

At Year 5, depreciation = $90,000 / 100,000 miles x 10,000 miles = $9,000

Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Years 1 - 4.

Accumulated depreciation expense for Years 1 to 5, under this method, is $90,000 (addition of first four years and the Year 5).

The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/5years = 20%, then 20% multiplied by 2 to give 40%

At Year 1, 40% X $99,000 = $39,600

At Year 2, 40% X $59,400 ($99,000 - $39,600) = $23,760

At Year 3, 40% X $35,640 ($59,400 - $23,760) = $14,256

At Year 4, 40% X $21,384 ($35,640 - $14,256) = $8,554 approximately (the depreciation expense would stop at this stage since the amount falls below the residual value).

Accumulated depreciation expense for Years 1 to 4, under this method, is $86,170 (addition of all the yearly depreciation).

7 0
3 years ago
sales forecasts . multiple select question. should not be used for audit decisions help auditors understand management's strateg
Anna [14]

Sales forecasts <u>help auditors understand </u><u>management's strategy</u>

<u>can be used in valuing </u><u>inventory</u>

<u />

What are sales forecasts?

A sales forecast is an indication of predicted sales revenue. What your business expects to sell during a specific time period is estimated by a sales forecast (like a quarter or year). The most accurate sales projections do this. By providing knowledge of the probable behavior of your most valued clients, sales forecasting aids in achieving this revenue efficiency. In addition to enhancing pricing, advertising, and product development, you may forecast future sales. The ability of your business to predict future revenues across particular time periods in order to better manage resources is one of the benefits of sales forecasting.

To learn more about sales forecast click on the given link:

brainly.com/question/29110387

#SPJ1

4 0
1 year ago
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