Answer:
Annual ordering cost=$32.142
Explanation:
Annual ordering cost = Annual demand/order quantity × ordering cost per order
Annual demand = 15 × 12 = 180 units
Kindly note that there are 12 months in year.
Annual Ordering cost = 180/28 × $5= $32.142
Annual ordering cost=$32.142
Answer:
The Correct Option is C
Explanation:
Even if the insured fails to keep the underlying coverage in force, the umbrella policy is designed to still cover all claims that surpasses the underlying policies limit as though the were kept in force.
Answer:
$27,500
Explanation:
The computation of the partnership loss borne by the Nelson is shown below:
= (Contributed amount by Nelson) ÷ (Firm contribution amount) × (loss incurred)
= ($50,000) ÷ ($200,000) × ($110,000)
= 0.25 × $110,000
= $27,500
The firm contribution amount would be calculated below:
= Wilson contributed amount + Pickett contributed amount + Nelson contributed amount
= $100,000 + $50,000 + $50,000
= $200,000