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Lelechka [254]
3 years ago
12

Sophia purchased a variable annuity contract with a purchase payment of $70,000. Surrender charges begin with 9 percent in the f

irst year and decline by 1 percent each year. In addition, Sophia can withdraw 12 percent of her contract value each year without paying surrender charges. In the first year, Sophia needed to withdraw $13,700. Assume that the contract value had not increased or decreased because of investment performance. What was the surrender charge Sophia had to pay
Business
1 answer:
Flura [38]3 years ago
4 0

Answer:

$477

Explanation:

Calculation to determine the surrender charge Sophia had to pay

Using this formula

Surrender charge = [Withdraw all amount - (Free withdraw all % x Account value)] x Surrender charge

Let plug in the formula

Surrender charge= [$13,700 - (0.12 x $70,000)] x 0.09

Surrender charge= ($13,700-$8,400)×0.09

Surrender charge=$5,300×0.09

Surrender charge=$477

Therefore the surrender charge Sophia had to pay is $477

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Answer:

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3 years ago
Product Tango has revenue of $195,200, variable cost of goods sold of $115,600, variable selling expenses of $33,000, and fixed
Alex777 [14]

Answer:

a.

<u>Differential analysis on whether to continue or discontinue Product Tango</u>

                                     Continue                Discontinue

Sales                            $195,200                       $0

Less Variable Costs :

Cost of Goods Sold    ($115,600)                       $0

Selling Expenses         ($33,000)                       $0

Less Fixed Costs :

Fixed Costs                  ($58,300)                 ($58,300)

Net Income/ (Loss)       ($12,300)                 ($58,300)

b

Continue with Product Tango. Because it brings a contribution towards the Fixed Costs helping to achieve a smaller loss margin.

Explanation:

From the differential analysis, Fixed costs will remain the same whether the product is discontinued or not. This is because they are centrally controlled. Only the variable costs would change.

3 0
3 years ago
According to the text, how many steps are involved in the consumer decision making process?.
Amanda [17]

Answer:

5- steps

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6 0
3 years ago
The break even income would be level
Anton [14]
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I hope it helped you!
5 0
3 years ago
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Answer:

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3 0
4 years ago
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