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a. Calculate the annual WCI (Workers Compensation Insurance) premium that each of these companies would have to pay. Show your work b. Based on your findings in question a) what would you recommend to your company/boss?

a. Calculate the annual WCI (Workers Compensation Insurance) premium that each of these companies would have to pay. Show your work b. Based on your findings in question a) what would you recommend to your company/boss?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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"We TryNotToGetCaught Inc. (WT) is a specialty subcontractor with an EMR of 1.10. WT has been pre-qualified to participate in an important public bid for a project. You have estimated the following characteristics for WT and for two similarly structured and very strong competitors. Confirmed EMR information (from previous public bids) Estimated Annual Payroll (your "educated" guess-estimate) Estimated (Company Average) Workers Compensation "Base" Rate WT 1.1 $1,750,000 $1,850,000 Competitor A Competitor B 0.8 New Company 17.5% 18.0% $1,600,000 18.5% a. Calculate the annual WCI (Workers Compensation Insurance) premium that each of these companies would have to pay. Show your work Based on your findings in question a) what would you recommend to your company/boss? b.
Transcribed Image Text:"We TryNotToGetCaught Inc. (WT) is a specialty subcontractor with an EMR of 1.10. WT has been pre-qualified to participate in an important public bid for a project. You have estimated the following characteristics for WT and for two similarly structured and very strong competitors. Confirmed EMR information (from previous public bids) Estimated Annual Payroll (your "educated" guess-estimate) Estimated (Company Average) Workers Compensation "Base" Rate WT 1.1 $1,750,000 $1,850,000 Competitor A Competitor B 0.8 New Company 17.5% 18.0% $1,600,000 18.5% a. Calculate the annual WCI (Workers Compensation Insurance) premium that each of these companies would have to pay. Show your work Based on your findings in question a) what would you recommend to your company/boss? b.
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