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Elza [17]
3 years ago
10

a lawnmower manufacturer has the following loss distribution for its annual products liability costs: loss probability 250,000 0

.05 10,000 0.15 0 0.9 what is the expected claim cost for a policy with $10,000 deductible
Business
1 answer:
Bas_tet [7]3 years ago
6 0

Answer: $12,000

Explanation:

The question makes no sense in one area. The loss probability for $0 cannot be 90% because the other two are collectively 20%. I shall therefore assume that the loss probability for $0 is 80% so that they add up to 100%.

Expected claim cost = ∑[loss probability * (Loss - Deductible)]

= 0.9 * 0 + [0.15 * (10,000 - 10,000)] + [0.05 * (250,000 - 10,000)]

= $12,000

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Suppose Americans buy inputs from foreigners. When the price of foreign inputs falls, the U.S. SRAS curve __________, which tend
Mademuasel [1]

When the price of foreign inputs falls, the U.S. SRAS curve option (b)i.e, shifts rightward; which tends to reduce the U.S. price level.

<h3>What is the SRAS curve?</h3>

We can understand how each firm in an economy reacts to price stickiness using the short-run aggregate supply curve (SRAS). The SRAS curve will have an upward slope when prices are stable. According to the SRAS curve, more output results from higher price levels.

The cost of labor, or wages, and the price of imported commodities that we use as inputs for other products are two other significant variables that may cause the SRAS curve to change in addition to energy prices.

A higher level of productivity causes the SRAS curve to move to the right because businesses can produce more output at all price points.

To know more about SRAS curve refer to:  brainly.com/question/16909327

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7 0
2 years ago
In a process costing system, which of the following would be TRUE?a.There is no need to track materials to processes.b.There is
Allushta [10]

Answer:

d.All of these choices are true.

Explanation:

In a process costing system, a.There is no need to track materials to processes.b.There is no need to use time tickets to assign costs to processes.c.A process costing system is more expensive to maintain because it has more work-in-process accounts.d.All of these choices are true . All of the choices given are true .

3 0
3 years ago
Honest Abe’s is a chain of furniture retail stores. Integral Designs is a furniture maker and a supplier to Honest Abe’s. Honest
valentinak56 [21]

Answer:

The cost of capital according to CAPM method for Abe will be 12.46%

Their project will be evaluate with this rate.

Explanation:

It will use the CAPM to evaluate the project, as there is no debt, the WACC is not needed.

Ke= r_f + \beta (r_m-r_f)  

rf = risk free 0.035

rm = market rate  

premium market = (market rate - risk free) = 0.08

beta(non diversifiable risk) 1.12

Ke= 0.035 + 1.12 (0.08)

Ke 0.12460 = 12.46%

3 0
3 years ago
A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capa
Blababa [14]

Answer:

1.90

Explanation:

Calculation for how many cells that the company require to satisfy predicted demand

Using this formula

Numbers of cell=Projected annual demand/Annual capacity per cell

Based on the information given we were told that Annual demand is 50,000 units in which it is forecasted that within 2 years it will tripple which means that Annual demand will be calculated as:

Projected annual demand = 50,000*2 years

Projected annual demand=100,000

Let plug in the formula

Numbers of cell=100,000÷(220 units/day × 238 days/year)

Numbers of cell=100,000÷52,360

Numbers of cell=1.90

Therefore the amount of cells that the company require to satisfy predicted demand will be 1.90

6 0
3 years ago
For each of the following transactions, determine if Raymond Corporation has earned revenue during the month of May and, if so,
kompoz [17]

Answer:In the month of May, Revenue was only earned from Customer C $3,400 and customer D, $2,300. Revenue was not earned from Customers A and B in the month of May. Therefore, total revenue is $5,700.

Explanation:In accordance with the principle of revenue recognition,Revenue will only be recognised when it is earned and services when they are fully rendered. For Customer A, the service has not been rendered, Therefore, the revenue is not yet earned.

For customer B, Although agreement has been reached and goods delivered, since payment hasn't been received, revenue is not recognised.

6 0
3 years ago
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