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Answer:
Expected loss without insurance = $850
Explanation:
Given:
Probability to got injured or killed = 1 / 1000
Law suit average cost = $850,000
Deductible insurance = $100,000
Expected loss without insurance = ?
Computation of Expected loss without insurance:
Expected loss without insurance = Lawsuit average cost × Probability to get injured or killed
Expected loss without insurance = $850,000 × (1 / 1000)
Expected loss without insurance = $850
The appropriate response is sales revenue. Revenue is the measure of cash that an organization really gets amid a particular period, including rebates and conclusions for returned stock. It is the "best line" or "gross pay" figure from which costs are subtracted to decide net salary.