A company is considering two insurance plans with coverage and premiums shown in the table. (Forexample, this means that $50 buys one unit of plan A, consisting of $10,000 fire and theft insuranceand $180,000 of liability insurance.) Answer parts a and b.Policy B$15,000Policy AFire/Theft$10,000Liability$180,000$120,000Premium$50$40a. The company needs at least $450,000 fire and theft insurance and at least $5,400,000 liability from these plans. How many units should be purchased from eachplan to minimizethe cost of the premiums? What is the minimum premium?The company should purchase 18 units of Policy A and 18 units of Policy B, for a premium of $ 1620 .b. Suppose the premium for policy A is reduced to $25. Now how many units should be purchased from each plan to minimize the cost of the premiums? What is theminimum premium?The company should purchaseunits of Policy A andunits of Policy B, for a premium of $

Given Information:Insurance plan is provided as:Policy APolicy BFire/TheftLiabilityPremiumThe…

Answered: A company is considering two insurance…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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You have been asked for help by your friends, Max and Minnie, both aged 30, whoare too busy with their jobs to be able to manage their personal finances effectively.Max is a road surface operative. He earns £27,970 a year. Minnie is a psychologist.She earns £65,970 a year.Each of them contribute £2,400 of their annual earnings to their workplace pensionscheme. The scheme is a “defined contribution” scheme, which invests theircontributions to build up a pot of assets, out of which they can draw a pension whenthey retire.Their employers match their contributions up to £2,400 per year, so each of them has£4,800 going into their pension pot each year.Their own pension contributions are deductible from their income before their incomeis charged to income tax. But neither their own pension contributions, nor any incometax, are deductible before the calculation of national insurance.The contributions of their employers do not count towards the income on which tax ornational insurance are…
Imperial Jewelers manufactures and sells a gold bracelet for $405.00. The company's accounting system says that the unit product cost for this bracelet is $258.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $ 144 83 31 $ 258 The members of a wedding party have approached Imperial Jewelers about buying 18 of these gold bracelets for the discounted price of $365.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would also have to buy a special tool for $463 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $6.00 of the overhead is variable…
Steven and Donna have been married for 35 years. Both are in great health, but they feel it is time that they start planning for their future health needs. Steven is 60 years old, and Donna is 61 years old. They have been approached by a long-term care insurance salesperson who is offering the following insurance product: . . . . Annual maximum benefit: $67,200 or 80% of annual cost, whichever is less. Daily maximum benefit: $187 or 80% of daily cost, whichever is less. Billing cycle: 360 days. Premium for policy with 180-day elimination period: $3,248. Premium for policy with 90-day elimination period: $3,696. Premium for policy with 30-day elimination period: $4,256. Steven and Donna are interested in possibly purchasing one of these policies. Use the following information to help them analyze which policy may be the best alternative, The current annual cost of a good nursing care facility in their area is $91,440, They have $28,000 saved in a money market savings account, $11,200 in…
A wireless carrier offers the following plans that a person is considering. The Family Plan: $ 95 monthly fee, unlimited talk and text on up to 5 lines, and data charges of $ 47 for each device for up to 2 GB of data per device. The Mobile Share Plan: $ 180 monthly fee for up to 10 devices, unlimited talk and text for all the lines, and data charges of $ 30 for each device up to a shared total of 10 GB of data. Use P for the number of devices that need data plans as part of their cost. Find the model of the total cost of the Family Plan $ Find the model of the total cost of the Mobile Share
For a lifetime life insurance purchased by someone aged 40, some of the following information is provided: • The death benefit is paid at the end of the year of death of $35000 if you die at age 20 year from first contract, $70000 if dies after 20 years of contract. • Premiums with the same amount are paid on average twice a year for a maximum of 20 years as long as they are alive. ä40 = 18,458 60= 14,904 ä50 = 17,025 ä(2) 40:201 = 19,628 ä(2)50:101 = 17,553 20E40 0,36663 10E50 0,60182 i = 0,05 Calculate the benefit reserve at time 10, that is 10V, using the prospective method! =
Imperial Jewelers manufactures and sells a gold bracelet for $408.00. The company’s accounting system says that the unit product cost for this bracelet is $259.00 as shown below: Direct materials $ 141 Direct labor 82 Manufacturing overhead 36 Unit product cost $ 259 The members of a wedding party have approached Imperial Jewelers about buying 29 of these gold bracelets for the discounted price of $368.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $12. Imperial Jewelers would also have to buy a special tool for $457 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $13.00 of the…

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