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3 years ago

What is a shared risk pool in an annuity?

1 answer:

7 0

Risk pooling allows an insurance carrier to provide an income stream via an immediate annuity, even with its costs and expenses, far more cheaply than a person could on his or her own. Risk pooling is the practice of sharing all risks among a group of insurance companies.

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Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the

LiRa [457]

Answer:

Results are below.

Explanation:

Giving the following information:

Units Produced Total Costs

101,500 $28,022,500

118,500 30,997,500

131,500 33,272,500

To calculate the fixed and variable costs, we need to use the high-low method:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (33,272,500 - 28,022,500 ) / (131,500 - 101,500)

Variable cost per unit= $175

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 33,272,500 - (175*131,500)

Fixed costs= $10,260,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 28,022,500 - (175*101,500)

Fixed costs= $10,260,000

Now, the total cost for 115,000 units:

Total cost= 10,260,000 + 175*115,000

Total cost= $30,385,000

3 0

3 years ago

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold

sveticcg [70]

Answer: Specialty Product

Explanation: Blue bell cookie represents a typical example of a specialty product to Gwen, because the cookie bears a special place in her heart.

A specialty product is a product that is very special to a consumer and the consumer can go to any length to purchase them.

6 0

3 years ago

Suppose that Chillmax Company now sells both pairs of shoes and fabric carryalls. The pairs of shoes are priced at $60 and have

olchik [2.2K]

Answer:

The package of shoes and carryalls based on the sales mix expected for the coming year is:

= 4:1

Explanation:

a) This means for every 4 shoes, there is 1 carryall.

b) Data:

Company-wide Fixed costs = $91,500

Unit price of a pair of shoes = $60

The variable cost = $21

This gives a contribution to the fixed cost = $39 ($60 - $21) per unit

Unit price of carryalls = $36

The variable of carryalls = $9

This gives a contribution to the fixed cost = $27 ($36 - $9) per unit

Estimated quantity of pairs of shoes to be sold next year = 3,500

Estimated quantity of carryalls to be sold next year = 875

The ratio of shoes to carryalls = 3,500:875

= 3,500/875

= 4:1

The sales mix for Chillmax Company refers to the proportion of the company's total sales for each type of product sold (pairs of shoes and carryalls).

8 0

3 years ago

Calls arrive at Lynn Ann Fish’s hotel switchboard at a rate of 2 per minute. The average time to handle each is 20 seconds. Ther

nataly862011 [7]

Answer:

Part A. Compute the probability that operator of the hotel is busy.

The call arrives at Lynn Ann Hotel at the rate of 2/min.

Therefore, 2 min = 120 customers per hour

Thus, the call is serviced by the operator at a rate of 20 seconds per customer.

Therefore,

P = 180 customers per hour

Probability that the operator will be busy:

P = λ / µ

P= 120 / 180

P = 0.67

Therefore, the probability that the hotel operator is busy is 0.67 hours

Part B. Determine the average time customer must wait:

$W_{q}$ = λ / µ (µ - λ)

$W_{q}$ = 120 / 180(180 - 120)

$W_{q}$ = 120 / 180(60)

$W_{q}$ = 120 / 10,800

$W_{q}$ = 0.011

Thus, the average wait time for the customer is 0.011 hours

Part C. Determine the average number of call waiting:

$L_{q}$ = λ^2 / µ (µ - λ)

$L_{q}$ = 120^2 / 180 (180 - 120)

$L_{q}$ = 14,400 / 180 (60)

$L_{q}$ = 14,400 / 10,800

$L_{q}$ = 1.33

Thus, the average waiting call to be answered is 1.33 hours

6 0

3 years ago

Holly loaned funds at 12or 30 days and earned $500 in interest. how much is the principal on this loan (use ordinary interest)?

Mamont248 [21]

$50,000 is the principal amount.

When you initially apply for a house loan, you borrow a certain amount of money, which is known as the principle. Simply deduct your down payment from the final selling price of your house to determine your mortgage principal.

The formula for calculating the Principal amount would be P = I / (RT) where Interest is Interest Amount, R is Rate of Interest and T is Time Period.

I = $ 500

RT= .12 X 30/360

So,

P = I/RT

P= 500/0.01

P= $50,000

Holly loaned funds at 12 or 30 days and earned $500 in interest. The principal amount on this loan is $50,000

To learn more about the Principal amount

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4 0

2 years ago

What is a shared risk pool in an annuity?​

What is a shared risk pool in an annuity?