The given statement is FALSE.
Explanation:
This is an example of adverse selection.
Adverse selection applies to a case in which the purchasers and distributors of the insurance policy don't have the same details at their fingertips. A typical definition of health insurance is where a person wants to learn if he is ill and in need of health coverage before paying for a health insurance package.
Examples of adverse selection in life insurance involve cases when a person with a high-risk career, such as a racing car driver or someone dealing with weapons, obtains a life insurance policy without the need for an insurance provider realizing that they have a risky position.
Im so sure but I can help you later just give me a few minutes
Answer:
ADDITIONAL REVENUE & ADDITIONAL COST
Explanation:
If Korey has made the decision to bring on an extra hand to help run the store in the afternoons and the new employee will make $435 per month; then there are 2 changes that will happen to the monthly net income
1. Increased Revenue: Since the new employee will be bringing in additional revenue of $435, then the direct impact of that is an increment in the revenue line of the income statement
2. Increased Costs: Secondly, this change will affect Korey's monthly net income in the area of cost because he has to pay the extra hand some sort of monthly salaries which will have a reducing effect on profit.
Answer:
Per unit total cost $49.00
Explanation:
The per unit total cost is as follows;
Particulars Total Costs Output
High level $21,300 420
Low level $15,300 270
Difference $6,000 150
Unit variable cost 40 ($6000 ÷ 150)
Fixed cost $4,500 ($21,300 - (420 × 40)
)
Total cost at 500 lenses $24,500 ($4,500 + (500*40))
Per unit total cost $49.00 ($24,500 ÷ 500)
