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Snezhnost [94]
3 years ago
15

Joan Wilder receives a phone call from a salesman who tries to sell her an insurance policy by scaring her about her high risk o

f death from this disease. She knows that this type of insurance policy has a notoriously poor value so she politely declines. What type of insurance policy did this salesman likely try to sell her?
Business
1 answer:
NikAS [45]3 years ago
7 0

Answer:

cancer insurance policy

Explanation:

Based on the information provided within the question it can be said that the type of insurance policy that the salesman tried to sell was a cancer insurance policy. This is a type of policy that is meant to manage the risks that are related the any cancer disease, and helps lower the costs associated with the treatments needed for treating this disease. Unfortunately these types of policies have an extremely low value which is why Joan declined.

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Answer:

Option (A) is correct.

Explanation:

Given that,

Estimated fixed cost = $288,000

Estimated variable cost = $14 per unit

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Selling price = $20 per unit

We first need to calculate the contribution margin:

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= $6

The break even point in units is the ratio of fixed cost to the contribution margin per unit.

Break-even point in units:

= Fixed cost ÷ Contribution margin per unit

= $288,000 ÷ $6

= 48,000 units

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