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rjkz [21]
3 years ago
10

Both Nadia and Samantha are applying to insure their car against theft. Nadia lives in a secure neighborhood, where the probabil

ity of theft is 10%. Samantha lives in a lesser secure neighborhood where the probability of theft is 25%. Both Nadia and Samantha own cars worth $10,000 and are willing to pay $100 over the expected loss for insurance.
If the insurance company can successfully screen both Nadia and Samantha into appropriate contracts, it would earn?

a. $3500 loss.

b. Between zero and $200.

c. Between zero and $200 loss.

d. $3500 gain.
Business
1 answer:
Sergio039 [100]3 years ago
3 0

Answer:

Option B

Explanation:

Both Nadia and Samantha have insured their cars and willing to pay $100 over the expected loss for insurance. If the car is stolen the company would pay expected loss and would earn nothing and if the car is not stolen the company would not be liable for any loss and would earn $200, Therefore the company would earn between $0 and $200.

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Verma, Inc. sells office furniture. In 2021, it sold 200 desks for $500 each. For each desk sold, Verma distributed a 50% discou
Effectus [21]

Answer:

$12

Explanation:

The standalone price is the price at which the seller (Verma) would sell its products or services (discount coupon) separately to other customers.

to determine the standalone price of the discount coupon we must multiply the change in discount by the expected use of the coupons:

  • change in discount = $150 x (50% - 10%)  = $150 x 40% = $60
  • expected use = 20%

= $60 x 20% = $12

3 0
3 years ago
Last years ending inventory was overstated. This error would cause...
Vsevolod [243]

Answer:

This periods end assets to be overstated

Explanation:

As inventory is summarized in the assets if the final inventory is overstated it will generate an overstate in the following years.

7 0
3 years ago
Corporate owners earn a return​ ________. A. through interest earnings and earnings per share B. through capital appreciation an
TEA [102]

Answer:

C. By realizing gains through increase in share price and cash divideneds.

Explanation:

For most corporations, the management must strive to ensure the firm is doing well in the market space. Once a company is doing well, it will affect its share price positively on the stock exchange.

An increase in the share price of fim is a gain to the firm and its corporate owners. I.e sharedholders. This means that the value of their investment in the firm has appreciated.

Furthermore, the firm must try to make profit which is one of the reason of being in business. A firm that is making profit will be able to declare same at the end of the financial period, hence corporate holders(shareholders) would be have part in profit declaration through dividened.

7 0
2 years ago
Woolsey Corporation, a U.S. company, expects to sell goods to a British customer at a price of 250,000 pounds, with delivery and
iragen [17]

Answer:

C. $10,000 positive.

Explanation:

The computation of the amount that should be included is shown below:

= (Option strike price - spot rate) × purchased put options

= ($2.17 - $2.13) × 250,000

= $10,000

As the spot rate is less than the strike price so automatically there is a gain of $10,000

Hence, the option c is correct

5 0
3 years ago
At the beginning of the current period, Shamrock Corp. had balances in Accounts Receivable of $187,800 and in Allowance for Doub
nignag [31]

Answer:

See below

Explanation:

The net realizable values are as follows

ai For accounts receivables

Ending balance of account receivables = Beginning balance of account receivables + Credit sale - Collections uncollectible amount

= $187,800 + $860,400 - $687,720

= $360,480

aii For allowance for doubtful debt

= Beginning balance + Previously written off amount - Uncollectible amount + Bad debt expense

= $9,630 + $2,859 - $7,381 + $18,412

= $23,070

6 0
2 years ago
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