The equilibrium premium, which balances the premiums charged to healthy and unhealthy people, charged for insurance under this scenario is <em>e. You charge $3,000 and everyone buys insurance.</em>
$3,000 will be affordable to both the healthy and the unhealthy. This amount of premium will enable both classes to buy insurance.
It will <em>not benefit</em> the company to charge:
- $2,000 and enable everyone to buy insurance
- $3,000 and enable only unhealthy people to get insurance
- $1,000 so that only the healthy people to buy insurance
- $1,000 because only healthy people buy insurance.
Thus, the insurance premium charged should be <em>Option E.</em>
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Answer:
$75,600
Explanation:
We divide the total sales with the number of units to get the unit price . Similarly we get the unit price for the variable costs. But as the fixed costs remain constant they will not change. We get the contribution margin =$75,600
Lasseter Corporation
Contribution Format Income Statement for August
Sales (4,200 units) $ 127,100 /4100= $31 * 4200 $ 130200
Variable expenses (53,300/4100)*4200 = $ 54600
Contribution margin 75,600
Fixed expenses 44,200
Net operating income $ 31,400
Lasseter Corporation
Contribution Format Income Statement for August
Sales (4,100 units) $ 127,100
Variable expenses 53,300
Contribution margin 73,800
Fixed expenses 44,200
Net operating income $ 29,600
Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>
<u>Explanation:</u>
In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.
This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.
Once the bill submitted by company is approved, then the retention amount will be automatically debited.
The answers are as follows:
7. Retire from full time work.
A 401K account is a retirement saving account that is sponsored by one's employer. This type of account allow a worker to save a portion of its salary to invest before tax are deducted from the salary. Tax are only paid on the money when they are withdrawn from the account.
8. Keep your focus on the most important goal.
Prioritizing is the process of arranging the things we need to accomplish in the order of their importance and then executing them according to their importance. Prioritizing helps one to focus one's energy on the most important thing.
9. A guess or estimate of what something will be like in the future.
Projection is an important tool in business and in personal life. Projection involves using the events that are happening now to predict what is going to happen in the future about a particular thing. Projection helps one to prepare for the happenings of the future.
10. Reserve.
Reserve refers to the amount of money you have set aside for use in case of emergency. Emergency happens at all time, at such times, it will be best to have a certain amount of money in place to cater for such emergencies. This type of money is called reserve.
11. Increase your income by working more and decrease your expenses.
An income refers to the amount of money you are paid on a regular basis because of the services your render, while expenses refers to the amount of money you spend on your needs. In order to be able to save enough money, you have to increase your income and decrease your expenses.
12. Wages is an earned income.
An earned income refers to an income which you work for, that is, you render particular services before the money is paid to you. Wages refers to the money that are paid to workers either on daily basis or on weekly basis, therefore, wages is an earned income.
13. Gift is an unearned income.
An unearned income refers to an income which you did not work for but which is given to you by some else. Financial gifts are unearned income because, the gift is not given to you as a result of the services you render.
14. Investment income is an unearned income.
The profits that one derives from investments are considered to be unearned income because one personal efforts is not involved in making the profits.
15. Salary is an earned income.
Salary refers to the money that a worker is paid on a monthly basis as a result of the services which he or she renders. Salary, is thus an earned income, because one's efforts is involved in making the money.
