Answer:
The answer is: The insurer should be guaranteed positive economic profits.
Explanation:
The insurer (or insurance company) like any other company in the world, is not 100% sure they will make a profit from a business transaction.
For example, a person that takes a life insurance policy for $1 million might die due to an accident, and the insurance company will lose money with that specific client.
Answer:
15.65%
Explanation:
The computation of the internal rate of return is shown below:
Given that
Years Cash outflow/ cash inflow
0 -$200,000
1 $100,000
2 $77,000
3 $52,000
4 $40,000
The formula is
= IRR()
AFter applying the above formula, the internal rate of return is 15.65%
Costco is the biggest warehouse retailers in the US. It follows unique idea of low pricing. It has an<span> excellent channel management </span><span>that includes these concepts – goals – the main goal of this strategy was to give different types of brand names with private level merchandise with a low price. Policies – </span>Costo<span> has products which have margin that is lower than 14% and helps in providing products at optimum market price. Products – </span>it has various products with different colors and sizes and these help the company in high volume sales.<span> </span>
Answer:
1. D
2. A
3. C
4. B
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
The various types of cost variance components and their definition includes the following;
1. Standard price: the expected price
2. Actual quantity: the input used to manufacture the quantity of output
3. Actual price: the amount paid to acquire input
4. Standard quantity: the expected input for the quantity of output
Answer:
$10.00
Explanation:
Calculation to determine The selling price that would maintain the same contribution margin ratio as last year is
Based on the information given since variable cost increased by one-third (1/3) which means that the selling price amount has to as well increase by the same one-third (1/3) in order to maintain the same contribution margin ratio as last year.
Hence:
Selling price =$7.50+(1/3*$7.50)
Selling price=$7.50+$2.50
Selling price=$10.00
Therefore The selling price that would maintain the same contribution margin ratio as last year is $10.00
