Data for Hermann Corporation are shown below: Per Unit Percent
of Sales
Selling price $ 90 100 %
Variable expenses 63 70
Contribution margin $ 27 30 %

Fixed expenses are $30,000 per month and the company is selling 2,000 units per month.

2-a. Refer to the original data. However, in the text it is provided as "How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $2 per unit and increase unit sales by 10%.

2-b. Should the higher-quality components be used?

Find the expected net profit of an insurance company on a health-insurance policy if: the probability of a $5000 claim is 20%; the probability of a $1000 claim is 60%; the probability of a $20,000 claim is 10%, and the probability of no claim is 10%. the company charges $4000 for this coverage. interpret your answer.

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning

This problem has been solved! see the answerwhich of the following statements is correct? the consumer price index is a measure of the overall level of prices, whereas the gdp deflator is not a measure of the overall level of prices. if, in the year 2011, the consumer price index has a value of 123.50, then the inflation rate for 2011 must be 23.50 percent. compared to the gdp deflator, the consumer price index is the more common gauge of inflation. the consumer price index and the gdp deflator reflect the goods and services bought by consumers equally well.