Answer:
Bledsoe Corporation
Schedule of Cost of goods manufactured
Particulars Amount
Direct materials:
Beginning material inventory $25,100.00
Add: Purchases $72,100.00
Raw material available for use $97,200.00
Less: Ending material inventory $21,100.00
Raw material used in production $76,100.00
Less: Indirect material $4,010.00 $72,090.00
Direct labor $92,100.00
Manufacturing overhead applied $41,100.00
Total manufacturing costs $205,290.00
Add: Beginning WIP $17,100.00
Total cost of work in process $222,390.00
Less: Ending WIP $10,100.00
Cost of goods manufactured $212,290.00
Bledsoe Corporation
Schedule of COGS
Particulars Amount
Cost of goods sold:
Beginning finished goods inventory $48,100.00
Add: Cost of goods manufactured $212,290.00
Cost of goods available for sale $260,390.00
Less: Ending finished goods inventory $56,100.00
Unadjusted cost of goods sold $204,290.00
Add: Underapplied overhead $1,010.00 ($42,110 - $41,100)
Adjusted cost of goods sold $205,300.00
a firm installs 1500 air conditioners which need to be serviced every six months. the firm can hire a team from its logistics department at a fixed cost of $6,000. each unit will be serviced by the team at $15.00. the firm can also outsource this at a cost of $17.00 inclusive of all charges
There are 2 options available to the firm 1 is to hire the team for serviced or 2 is to outsource the service. Both the options are analyzed in detail as follows:
What is outsourcing?Outsourcing is the act of obtaining services from external provider instead of having own management. A company can outsource its functions or departments.
Inhouse (Team)
$6000 + ($15 * 1500) = $28,500
Outsource
$17 * 1500 = $25,500
Lowest is $25,500 in outsourcing
Conclusion
It is better to outsource the service of air conditioner as compared to have a team for this service.
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The ledger of the Blue Spruce Corp. at the end of the current year shows Accounts Receivable of $237,000.
(a)
If Allowance for Doubtful Accounts has a credit balance of $4,700 in the trial balance and bad debts are expected to be 9% of accounts receivable, journalize the adjusting entry for the end of the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer: Dr: increase in provision for bad debts of 16630
Cr: P & L a/c 16630
Explanation:
finally reduce the figure for a/c receivables by 21330
Each year, more than ___________children age 4 and under die from poisoning from
household products and medicines?
Answer:
Explanation:
45%
Each year, more than 42% of children age 4 and under die from poisoning from household products and medicines.
What is poisoning?
Poisoning refers to the ingredients or the substances which are injurious to health or can cause death. It can cause the immediate death of the person. These substances are Alcohol, Berries and Seeds, Carbon Monoxide, Food Poisoning, Hazardous Chemicals etc.
Children under the age of five make up 42% of poisoning exposures, whereas adults over the age of 19 account for 93% of poisonings that are not fatal and 42% of those that are fatal.
Each year in the United States, Approximately between 2 and 4 million actual poisonings occurs. In which Approximately 90% of poisonings occur in the home.
Therefore, 42% of children age 4 and under die from poisoning from household products and medicines.
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Chapter 10 Standard Costs and the Balanced Scorecard EXERCISE 10-3 Direct Materials Variances [LO2] Refer to the data in Exercise 10-6. Assume that instead of producing 4,000 units during the month, the company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) Required: Compute the direct materials price and quantity variances for the month.
The required answer is materials price variance=[tex]\$ 3,000 \mathrm{~F}$[/tex]
Materials quantity variance [tex]$=\$ 2,375 \mathrm{U}$[/tex]
Materials price variance:
When the actual price paid for materials used in manufacturing differs from the standard price for the materials, this is referred to as a material price variation (MPV). If the actual price paid for the materials is less than the standard price, the material price variance will be beneficial.
The materials quantity variance is calculated simply for the amount of materials utilized in production, as opposed to the materials price variance, which is computed for the total amount of materials purchased in the solution below.
Actual Quantity of Input, at Actual Price
[tex]$(\mathrm{AQ} \times \mathrm{AP})$ \\[/tex]= [tex]$20.000$[/tex] pounds [tex]$\times$ \\[/tex] [tex]$\$ 2.35$[/tex] per pound[tex]$=\$ 47,000$[/tex]
Actual Quantity of Input, at Standard Price
[tex]$(\mathrm{AQ} \times \mathrm{SP})$[/tex]= [tex]$20.000$[/tex] pounds [tex]$\times$[/tex] [tex]$\$ 2.50$[/tex] per pound [tex]$=\$ 50,000$[/tex]
Standard Quantity Allowed for Output, at Standard Price
[tex](\mathrm{SQ} \times \mathrm{SP}) \\[/tex]= [tex]13,800[/tex] pounds[tex]* } \times[/tex] [tex]\$ 2.50 \text { per pound } \\[/tex] [tex]=\$ 34,500[/tex]
Price Variance [tex]\$ 3,000 \mathrm{~F}=[/tex] [tex]14,750 \text { pounds } \times \$ 2.50 \text { per pound }=\$ 36,875[/tex]
Quantity Variance U= [tex]\$2,375[/tex]
[tex]$\star 3,000$[/tex] units [tex]$\times 4.6$[/tex] pounds per unit $=13,800$ pounds
Alternatively, the variances can be computed using the formulas:
Materials price variance [tex]$=\mathrm{AQ}(\mathrm{AP}-\mathrm{SP})$[/tex]
20,000 pounds [tex]$(\$ 2.35$[/tex] per pound [tex]$-\$ 2.50$[/tex] per pound [tex]$)=\$ 3,000 \mathrm{~F}$[/tex]
Materials quantity variance [tex]$=S P(A Q-S Q)$[/tex]
[tex]$\$ 2.50$[/tex] per pound [tex]$(14,750$[/tex] pounds [tex]$-13,800$[/tex] pounds [tex]$)=\$ 2,375 \mathrm{U}$[/tex]
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Question2
Given below is information about three RM1000 par value bonds, each of which pays coupon semiannually. The required rate of return on each bond is 12%. Calculate the value of the bonds and determine whether the bond is selling at discount, premium or par value.
Bond Coupon Rate (%) Maturity (years)
1 10 5
2 12 10
3 14 15
The value of bond 3 is RM1137.65
This bond 3 is selling at a premium since the coupon rate(14%) is higher than the required rate(12%) orSince the bond value(1137.65) is more than its par value(1000)
Bond 3:
Coupon rate = 14% = 0.14
Coupon payment = Coupon rate*Face value/ Number of compounding periods in a year
CPN = 0.14*1000/2 = 140/2 = 70Number of years till maturity = 15 years
Number of periods till maturity = N = 15*2 = 30
We know that the price of the bond is given by the following formula,
P = CPN*(1/y)*(1-(1/(1+y)^N)) + FV/(1+y)^N
Substituting the given values in the above equation,
we get
P = 70*(1/0.06)*(1-(1/(1+0.06)^30)) + 1000/(1+0.06)^30
P = 70*(1/0.06)*(1-(1/(1.06)^30)) + 1000/(1.06)^30
P = 70*(16.6667)*(1-(0.943396)^30) + 1000*(0.943396)^30
P = 70*(16.6667)*(1-0.17411) + 1000*(0.17411)
P = 70*(16.6667)*(0.82589) + 1000*(0.17411)
P = 963.54 + 174.11
P = 1137.65
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How do economic principles apply to online markets? For example, a consumer can purchase a movie as a DVD or through a streaming service. Are supply and demand the same with each format?
Generally, asking for something urgently and vehemently, as though by right.
In conclusion, In economics, strong demand and low supply lead to higher prices, whereas the reverse is true when the supply is high and the demand is low. Equilibrium prices exist for every item.
This approach is used by online merchants since each customer demands a product with varying levels of intensity. Because their need for the goods is more pressing than others, some customers are willing to pay more. Discounts, buy one, get one free, and limited-time offers allow them to influence customer demand.
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Coffee King Starbucks Raises Its Prices Blame the sour news at Starbucks this week on soaring milk cost. … The wholesale price of milk is up nearly 70% in the 12 months. … “There’s a lot of milk in those [Starbucks] lattes,” notes John Glass, CIBC World Markets restaurant analyst. USA Today, July 24, 2007 a. Is milk a fixed factor of production or a variable factor of production? b. Describe how the increase in the price of milk changes Starbucks’s short run cost curve.
The milk as a factor of production is known as a variable factor of production and the increase in the price of milk changes Starbucks’s short run cost curve as the AVC, ATC and MC curves upward.
What is variable factor of production?These are those production factors that do change with output, that is. more are employed when production increases and less are usued when production decreases.
Some examples of a variable factors include labour, energy, and raw materials directly used in production.
However, the milk is also an example of a variable factor for Starbuck because the price of the raw material for producing its coffee keeps inculcating with economic trends.
Hence, the milk as a factor of production is known as a variable factor of production and the increase in the price of milk changes Starbucks’s short run cost curve as the AVC, ATC and MC curves upward.
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The Economic Freedom of the World index provides a measure of the extent to which various countries
Group of answer choices
A. rely on democratic political decision-making to allocate resources.
B. rely on markets rather than political decision-making to allocate resources.
C. use transfer payments and subsidies to achieve an Egalitarian distribution of income.
D. use political allocation to promote economic nationalism.
The Economic Freedom of the World index provides a measure of the extent to which various countries rely on markets rather than political decision-making to allocate resources. (option B)
What is the Economic Freedom of the World index?Economic Freedom of the World Index is a measure used to determine the degree to which the policies and institutions of countries are supportive of economic freedom. The Economic Freedom of the World Index measures economic freedom of 184 countries.
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The ledger of the Blue Spruce Corp. at the end of the current year shows Accounts Receivable of $237,000.
a) If Allowance for Doubtful Accounts has a credit balance of $4,700 in the trial balance and bad debts are expected to be 9% of accounts receivable, journalize the adjusting entry for the end of the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
The adjusting entry for the end of the period is :
Provisions for doubtful debts Account .........dr. 16,630
To Profit and loss Account 16,630
Given,
At the end of the current year, Blue Spruce Corp.'s ledger displays $237,000 in accounts receivable.
The trial balance shows a credit balance of $4,700 for Allowance for Doubtful Accounts.
And 9% of accounts receivable are predicted to be bad debts.
Amount of bad debts = 9% × amount of Accounts Receivables
= 9% × $2,37,000
= $21,330
Since, there is already a provision for doubtful debts of $4,700.
We have to increase it by (21,330 - 4,700) $16,630.
Hence, The adjusting entry for the end of the period is :
Provisions for doubtful debts Account .........dr. 16,630
To Profit and loss Account 16,630
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a. Determine the average rate of return for a project that is estimated to yield total income of $570,720 over six years, has a cost of $603,500, and has a $52,500 residual value. Round to the nearest whole number.
%
b. A project has estimated annual net cash flows of $30,000. It is estimated to cost $123,000.
Determine the cash payback period. Round your answer to one decimal place.
years
The Average rate of return is 35%.
The cash payback period is 4.10 years.
What is the average rate of return?Average rate of return is a capital budgeting method. It is used to determine if a firm should invest in a project or should not invest in a project
Average rate of return = average net income / average cost of investment
average net income =$570,720 / 6 = $95,120
Average cost of investment =( beginning book value of the investment - ending book value of the investment) / 2
(603,500 - 52,500) / 2 = $275,500
Average rate of return = ($95,120 / $275,500) x 100 = 35%
What is the cash payback period?Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
Payback period = 123,000 / 30,000 = 4.10 years
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What do all Agile frameworks have in common?
All agile frameworks have a specified, defined iteration period, a lightweight system that allows self-organized teams to better adapt to business requirements, and they all use iterative and gradual development. It's a word that refers to software growth methodologies.
What are the 3 agile frameworks?
Scrum, Kanban, and Extreme Programming (XP) are all agile frameworks commonly used for product development. They are all compatible with the principles in the Agile Manifesto
What is agile development frameworks?An Agile framework is a specific process to planning, managing, and executing work. Agile frameworks generally fall into two categories: Frameworks designed for teams, and frameworks developed to help organizations rehearse Agile at scale, across many teams.
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why is it important NOT to set your office fee schedule equal to the Medicare Fee Schedule?
Because the fee schedule is subject to change at any time during the year, it does not exceed (or at least does not equal) patients' allowances. Gains are lower if the fee schedule is lower than the medication fees because most other insurance allowances are higher than Medicare. So to gain higher revenue it is advisable not to set the office fee schedule equal to that of the Medicare. Medicare fee bis the most recent form of payment and eliminates wide payment variation across similar areas
What is the fee schedule?
The fee schedule is "a complete listing of fees used by Medicare to pay doctors or other providers/suppliers," according to the Centers for Medicare and Medicaid Services (CMS). On a fee-for-service basis, reimbursement for a doctor and/or other providers is done using this comprehensive list of fee maximums.
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Why are ethical concerns important issues when designing service pricing and revenue management strategies? What are potential consumer responses to service pricing or policies that are perceived as unfair?
Ethical concerns are important issues because service pricing schedules are intricate that it makes it easy for organizations to engage in unscrupulous manner.
What is ethics?It should be noted that ethics simply means the ability to know what's right from what's wrong.
In this case, ethical concerns are important issues because service pricing schedules are intricate that it makes it easy for organizations to engage in unscrupulous manner.
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Companies might easily engage in dishonest practices due to the complexity of service pricing schedules, making ethical considerations significant.
Why do we need ethics?Ethics may be defined as the capacity to distinguish between what is right and what is wrong.
In conclusion, Service pricing schedules are so complex that it's simple for businesses to act unethically, which raises ethical questions.
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Which manufacturer most likely uses intensive distribution? O a. Cadbury Adams, a manufacturer of Certs breath fresheners O b. Essential, a manufacturer of lighting fixtures O Citizen, a manufacturer of digital scales O d. Maytag, a manufacturer of appliances
The manufacturer most likely uses intensive distribution is: a. Cadbury Adams, a manufacturer of Certs breath fresheners
Who is manufacturer?A manufacturer can be defined as someone that produces product or goods from raw material to finished goods.
Hence, Cadbury Adams, a manufacturer of Certs breath fresheners is the manufacturer most likely uses intensive distribution.
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Do you think that setting business objectives for S and S blooms will make sure that the business is successful?Justify your answer
Improved Leadership will make sure that the business is successful.
Companies set goals and goals that help them make decisions. This allows the company to determine the main focus. Intentions and goals also indicate the direction the company wants to take, as well as key stakeholders such as investors and employees. This makes them more likely to support new projects.
Improved Leadership
With clear goals, organizational leaders can plan and direct new sales teams to see what they are working on. This kind of clarity also helps improve communication within the team, as everyone is on the same page.
“One thing that successful companies have in common is a strong interest in their customers,” said John Stephenson, marketing specialist at My GREExam Preparation. “They are creating a culture that focuses on customers and aligns processes, products, and services to the needs of their services.
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Discuss the concepts of Mean, Median, Mode, and Standard Deviation, including when each should be used, and evaluate the differences of each. How can knowing this information about data help us?
The mean is a mathematical concept that is used to determine what the average number is in a given set of numbers. For example, given a set of numbers, 5, 1, 1, 1, and 4, the mean is 2.4 ([tex]\frac{5+1+1+1+4}{5}[/tex]), where /5 is the sum of the given set of numbers.
What is the Median?The median is a term used to represent the middle value in a given set of numbers. For example, given a set of numbers, 5, 1, 1, 1, and 4, the median is 1 because it is the middle for this set of numbers counting from left to right.
What is the mode?The mode is a term that refers to the most frequently repeated value in a given set of numbers. For example, given a set of numbers 5, 1, 1, 1, and 4, the mode in the set is 1 since it occurs most, exactly three times.
What is the Standard deviation?Standard deviation is a statistical method used to determine how far (i.e the deviation) of a given dataset relative to its mean. It is often calculated as the square root of variance.
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in the business world, what is the most important aspect you can apply from having knowledge of
interpersonal communication?
Answer:
Being able to understand the problems they're going through in the business and because you understand very well you are able to help because if you don't understand what's going on even when it's explained you don't know what to do, so understanding the person's burden will hell you solve it.
THE MArket for lemon has 10 Potential consumers each having an individual demand curve P= 101-10Qi on where- P as price in dollars per cup and Qi as the numbers of cups demanded per week by the ith consumer, fand the market demand curve using algebra. Draw an individual demand curve & the market demand curve. what is the quantity demanded by each consumer and the market as a whole when lemon is priced at p= $1/ cup
Answer:
Explanation:
Q = \sum_{i=1}^{10}q_i \\ = q_1+q_2+q_3+...+q_{10} \\ = (\frac{101-P}{10})_1 + (\frac{101-P}{10})_2 + (\frac{101-P}{10})_3 + … + (\frac{101-P}{10})_{10} \\ = (10.1 -0.1P)_1 + (10.1 -0.1P)_2 + (10.1 -0.1P)_3 + … + (10.1 -0.1P)_{10} \\ = 10 \times (10.1 -0.1P) \\ = 101 -P \\ P = 101 - QQ=∑
i=1
10
q
i
=q
1
+q
2
+q
3
+...+q
10
=(
10
101−P
)
1
+(
10
101−P
)
2
+(
10
101−P
)
3
+…+(
10
101−P
)
10
=(10.1−0.1P)
1
+(10.1−0.1P)
2
+(10.1−0.1P)
3
+…+(10.1−0.1P)
10
=10×(10.1−0.1P)
=101−P
P=101−Q
This is the market demand curve for lemonade.
Given the individual demand curve and market demand curve, the graphs will be as follows:
The market demand curve is flatter than the individual demand curve.
Given the price of one cup of lemonade, the individual demand is calculated as follows:
Esmeralda promises to pay fiorello $400 because ""he does not have as much money as other people. "" esmeralda’s promise is not enforceable because:.
Esmeralda promises to pay Fiorello $400 because ""he does not have as much money as other people. "" Esmeralda's promise is not enforceable because: Fiorello has not given consideration in return.
INTERPRETATION-
Consideration is mutual i.e. both parties get something in the return for the performance of the contract. However, Esmeralda has not given consideration in exchange.
Esmeralda was given the chance to audition for the Performing Arts High School which she succeeded in. She then moved to New York and attended School, studying drama and dance.
Esmeralda Santiago wrote her autobiography "When I Was Puerto Rican" which narrates her and her family's life moving from Puerto Rico to America. The book also follows the Puerto Rican girl through the many obstacles that she had to endure and overcome to change her life.
Therefore, we can conclude that the correct option is A.
Your question is incomplete, but most probably your full question was:
Esmeralda promises to pay Fiorello $400 because “he does not have as much money as other people.” Esmeralda’s promise is not enforceable because
A. Fiorello has not given consideration in return.
B. Esmeralda could have paid more.
C. the redistribution of wealth on a one-to-one basis is not a valid social goal.
D. society does not want gifts cheapened by making them legally enforceable.
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5
Yusuke is developing a product that will revolutionize miniature train sets. When hiring a marketer, he should look for someone who specializes
in which type of marketing strategy?
O A grassroots marketing
OB.
viral marketing
О с.
street marketing
O D. niche marketing
Answer:
D. niche marketing
Explanation:
miniature train sets are a small specific detailed market
Forward Co. discarded a machine that cost $5,000 and was fully depreciated. The entry to record this transaction would include a credit to the
account.
Based on the fact that Forward Co. discarded a machine with cost $5,000, the entry to record this transaction in the books would include a credit to Machinery.
How do you dispose of fixed assets?When fixed assets are to be disposed of, the accumulated depreciation upt to that point is looked at to calculate the net book value.
This would then show the company if they made a profit or a loss when they sold the fixed asset with a profit being made when the selling price is higher than the net book value.
Regardless of the price the fixed asset is sold at, the company would record a credit to the fixed asset (machinery) account to show that the fixed asset account is decreasing.
In conclusion, there will be a credit to machinery.
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Suppose that a lifetime utility function is given by the equation
U
=
c
1
0.75
c
2
0.25
Match the combinations of
(
c
1
,
c
2
)
on the left-hand side with combination on the right-hand side that produce (approximately) the same level of utility.
Group of answer choices
(100, 50)
(80, 80)
(50, 300)
(110, 45)
based on the lifetime utility function and the combinations given, the correct match for the combinations with the same level of utility is:
(100, 50) = (79.37, 100)(80, 80) = (90, 56.19)(50,300) = (120, 21.7)(110, 45) = (53.1, 400)which functions give the same utility?first, find the utilities on the left side:
U(100, 50) = (100 ⁰.⁷⁵ x 50⁰.²⁵) = 84.09
U(80, 80) = (80 ⁰.⁷⁵ x 80⁰.²⁵) = 80
U(50, 300) = (50 ⁰.⁷⁵ x 300⁰.²⁵) = 78.25
U(110, 45) = (110 ⁰.⁷⁵ x 45⁰.²⁵) = 87.97
the utilities on the right:
U(79.37, 100) = (79.37 ⁰.⁷⁵ x 100⁰.²⁵) = 84.09
U(90, 56.19) = (90⁰.⁷⁵ x 56.19⁰.²⁵) = 80
U(120, 21.7) = (120 ⁰.⁷⁵ x 21.7⁰.²⁵) = 78.25
U(53.1, 400) = (53.1 ⁰.⁷⁵ x 400⁰.²⁵) = 87.97
the correct matching would be:
(100, 50) = (79.37, 100)(80, 80) = (90, 56.19)(50,300) = (120, 21.7)(110, 45) = (53.1, 400)find out more on utility functions at https://brainly.com/question/21326461.
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The __________ ensures that when consumers provide their verbal agreement during the telephonic enrollment, they acknowledge and understand they are actually enrolling, in which plan they are enrolling, as well as the standard disclosures.
Answer:
Staement of Understanding
Explanation:
explain controlling as a management task
Controlling is a management function that aids in obtaining desired results from employees at all organizational levels, including managers and subordinates.
Verifying if everything happens in accordance with the plans adopted, the directions issued, and the principles established constitutes controlling. Controlling makes sure that organizational resources are used effectively and efficiently to accomplish the intended goals.
The managing role identifies deviations, tracks progress toward corporate goals, and suggests necessary corrective action. In order to make the appropriate decisions regarding each, Controlling entails the meticulous gathering of knowledge about a system, process, individual, or group of people.
Managers establish and communicate while performing the management function of controlling. performance criteria for individuals, organizations, and technology
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Cost of Goods Sold = Revenue - Operating Profit, is it right? I have report about the unilever financial result, but I haven't seen the number of the cost of goods sold in its sheet!
Answer:
COGS= Revenue- Gross profit
Explanation:
exactly speaking, operating profit refers to the net profit and COGS=sales revenue - gross profit. so try to find the data of gross profit instead of operating profit (net profit)
If you don't have data of gross profit, you can attempt this equation:
gross profit = operating profit (net profit) + operating expense + (depreciation and amortization)
When delivering 2023 murano, demonstrate how to turn the driver assistance technologies on or off using ________.
In the case above, it is by using
The Driving Aids screen that is shown in the Advanced Drive-Assist Display.The Driver Assistance menu seen under Settings in the Advanced Drive-Assist Display.What are the packages is added for Murano?Murano is known to adds a lot of feature such as new Midnight Edition package, and blackout front grille, amidst others.
Note that In the case above, it is by using
The Driving Aids screen that is shown in the Advanced Drive-Assist Display.The Driver Assistance menu seen under Settings in the Advanced Drive-Assist Display.Learn more about Cars from
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How could the Federal Reserve use monetary policy to stimulate the economy?
The Federal Reserve implements monetary policy primarily by influencing the federal funds rate. This is the interest rate that financial institutions charge each other to borrow reserves in the money markets overnight. The Fed's monetary policy measures described below, affect the level of federal funds rates.
When a central bank like the Fed changes interest rates, it affects the economy as a whole and affects both the stock and bond markets in many ways. Lower interest rates make borrowing money cheaper. This can drive consumer and corporate spending and investment and boost asset prices.
The goals of monetary policy are maximum employment, stable prices, and moderate long-term interest rates. By implementing effective monetary policy, the Fed can maintain stable prices, thereby supporting long-term economic growth and maximum employment conditions.
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What word do we use when we describe an economy with a high unemployment rate and little growth while prices are still rising?
Answer:
i dont know to be honest can you tell me
Explanation:
Answer: Stagflation
Explanation:
There are three individual firms in happy Valley the government wants to reduce pollution and 90 units so it gives each firm 30 tradable pollution permits Farme has 30 units at five dollars firm be has 45 units at $10 and firm C has 60 units at $20 because firm blank has the highest cost of reducing pollution by one unit it would like to blank another firm because firm blank has the lowest cost of reducing pollution by one unit
The Tucker family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a deductible of $1,000 per person. If one family member has doctor and prescription medication expenses of $2,200, what amount would the insurance company pay?
The insurance company pay will pay $960 to the Tucker family as health insurance.
The Tuckers' health insurance has a $1,000 deductible per person. This implies that the family member with $2,200 in doctor and prescription drug expenses must pay the first $1,000 before the insurance company will begin paying.
To begin, subtract the deductible from the total expenses to get the amount subject to coinsurance. This gives us 2200 - 1000 = 1200.
The amount subject to coinsurance is then multiplied by the coinsurance percentage to calculate the amount that the insurance company will pay. This results in 1200 * 0.8 = 960.
The insurance company would pay $960 for the Tucker family member's doctor visits and prescription drugs. The remaining $240 in expenditures would be borne by a family member.
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