If the balance of the allowance for doubtful accounts is $11,000 debit before adjustment what is the amount of bad debt expense for that period. The balance after adjustment in Allowance for Doubtful Accounts = $45,000.
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Given an industry is producing the socially efficient output level, a tax placed on the industry will result in inefficiency because the market will produce.
Tax placed on the industry, producing socially efficient level of output, too few units, giving up some units that have more consumer value than productive costs. Therefore, option (c) is correct.
Socially efficient output level is the output level that takes into consideration all the drawbacks and benefits of a transaction, or the equilibration that could be reached if the results of the industry accounted for the effect of externalized costs.
As per social efficiency, resources must be allocated so that everybody in the society would benefit. The right approach to distribute wealth in a society is to take into consideration both internal and outside advantages and costs. When government will increase tax on socially efficient level of output, they will not be able to produce as much to meet the requirements of society as a whole.
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The Question was incomplete. Check below the full question
Given an industry is producing the socially efficient output level, a tax placed on the industry will result in inefficiency because the market will produce
a) too many units, as some units produced will have more productive costs than consumer value.
b) too many units, as some units produced will have more consumer value than productive costs.
c) too few units, giving up some units that have more consumer value than productive costs.
d) too few units, giving up some units that have more productive costs than consumer value.
a property is financed with a 75% loan at 11.5% over 25 years. the property produces an atirr on total investment of 7.34% based on a tax rate of 31%. what can be said about the leverage associated with the property?
If you see the given data in the question, cost of borrowing ( loan interest rate ) is greater than the return (ATIRR). So it means that the property is not able to make use of the levereage and there exists negetive leverage
Leverage is an funding method of the usage of borrowed money—specifically, the usage of diverse monetary gadgets or borrowed capital—to growth the capability go back of an funding. Leverage also can seek advice from the quantity of debt a organization makes use of to finance assets. Total Required Investment refers to the quantity the Borrower should make a contribution to the transaction which include the Borrower's down payment and the Borrower-paid transaction costs.
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consider the demand function p equals 100 (1.5 to the power of negative q end exponent ). space spaceat a price of $71.00, what will be the quantity demanded?
Considering the demand function [tex]p = 100 (1.5^{-q})[/tex] at a price of $71, the quantity demanded will be 0.85
Demand is the desire and financial capacity of consumers to purchase a good or service at a particular price and moment. The equilibrium price and quantity will be determined by the supply and demand curves. A demand function is described by the equation p=f(x), p = f (x), where p represents the unit price and x represents the quantity in question. A demand function is typically characterized as a decreasing function of x, meaning that it gets smaller as x grows.
The function of demand
[tex]p = 100 (1.5^{-q})[/tex]
Price (P) = 71
[tex]71 = 100(1.5)^{-q}[/tex]
[tex](1.5)^{-q} = \frac{71}{100}[/tex]
Taking both sides of the logarithm:
[tex]Log (1.5)^{-q} = Log (\frac{71}{100})[/tex]
-q * log (1.5) = log (71 / 100)
q = [-log(71/100) / log(1.5)] = 0.85
Therefore, quantity demanded = 0.85
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1. the largest percentage (68.5%) of advertising dollars has gone toward print advertising. video broadcast advertising. radio advertising. internet display advertising. 2. of the top five advertisers, who ranks at the top for advertising dollars spent? general motors verizon colgate-palmolive procter
The largest percentage (68.5%) of advertising dollars has gone toward video broadcast advertising. Of the top five advertisers, Procter & Gamble ranks at the top for advertising dollars spent.
The United States is perhaps the largest advertising global market with over 285 billion U.S. dollars was spent on advertising in the United States in 2011. Among the various modes of advertising medium, the video broadcast advertising is most popular as video advertisements are entertaining, eye-catching, and ideal for conveying a complex story that other display ad. Instream video ads and outstream video ads are the main ways that advertisers will utilize video ads. In 2021, Procter & Gamble became the largest advertiser worldwide with an investment of 8.1 billion in promotional activities that year.
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2. inventory cost is least likely to include: a) production-related storage costs b) costs incurred as a result of normal waste of materials c) transportation costs of shipping inventory to customers
Inventory cost is least likely to include c) transportation costs of shipping inventory to customers.
In the field of business, an inventory cost can be described as the cost that a company takes in order to buy a product, manage it and also store the product.
Product-related storage cost is included in the inventory cost as the storage is made for the specific product.
Also, if any of the product or parts of the product gets wasted, they are also included in the inventory cost of that particular product.
However, the cost that is takes for transporting a product to the customer is not included in the inventory cost.
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jeff and ricardo agree to work together in a painting business they call 207e painting. they follow no formal procedures and have no written agreement. what business organization is 207e painting?
Jeff and Ricardo agree to work together in a painting business they call 207e painting. The business organization is general partnership is 207e painting,
Painting is the process of using a brush to apply paint or other materials to a surface. People who paint feel better about themselves and are motivated to improve their abilities. A sense of accomplishment is produced as a result of developing and improving artistic abilities.
A general partnership, which is the fundamental type of partnership under common law, is, in the majority of nations, a grouping of people or an unincorporated business. The parameters governing the division of earnings and losses, managerial activities, and interest transfers are negotiable in general partnerships.
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question number 1) the integration of augmented reality in video games like marvel's dimension of heroes dates back to the original nintendo wii. into which stage of the product life cycle does this likely put this type of video game?
Augmented Reality (AR) - There are four phases in the life cycle of a product: introduction, growth, maturation, and decline.
What is Augmented Reality?
The real world as well as computer-generated content are combined in augmented reality (AR), an interactive experience. The information can be presented in a variety of ways, including visually, aurally, haptically, somatosensorily, and olfactorily. A system that combines the real and virtual worlds with real-time interaction and precise 3D registration of virtual objects is what is known as augmented reality (AR). The sensory information that is superimposed may be harmful or beneficial to the environment. This experience is so seamlessly integrated with the real world that it appears to be a realistic component of the setting. In this way, virtual reality completely replaces this same user's real-world environment with such a simulated one, whereas augmented reality modifies one's ongoing perception of a real-world environment.
Because Augmented Reality (AR) was first introduced a long time ago and has since moved past the introduction stage, waiver mini has implemented new updates and modifications to ensure that it consistently releases new versions, which makes it clear that it is in the product life cycle's growth stage.
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on february 1, paid $12,000 cash for insurance coverage for a 5 month period starting february 1. the amount of the monthly adjusting journal entry is:
paid $12,000 in cash for insurance coverage beginning on February 1 for a 5-month term. The monthly adjusting journal entry is for $12,000.
The majority of people have some sort of insurance, whether it is for their life, their home, or their car. However, the majority of us don't really take the time to consider what insurance is or how it operates.
Simply put, insurance is a contract, represented by a policy, under which a policyholder receives monetary protection or payment from an insurance firm against losses. To make payments more manageable for the insured, the company pools the risks of its clients.
Insurance policy are used as a hedge against the risk of monetary losses, both large and minor, that may arise from harm to the insured or their property, or from liability for damage or injury given to a third party.
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It is important to record documents conveying a real property interest because recording.
It is important to record documents conveying a real property interest because recording satisfies the doctrine of constructive notice.
What is interest?
In the field of finance as well as economics, interest is the payment made at a set rate by a borrower as well as deposit-taking commercial bank to a lender or depositor in excess of the principal amount (the amount borrowed). It differs from a fee the borrower might pay the creditor or another party. It also differs from a dividend, which is money given to shareholders (owners) by a company out of its profit or reserve, but not on a set rate predetermined in advance, instead on a pro rata basis as a portion of the rewards received by risk-takers who take on costs in order to generate revenue.
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suppose a country's labor force is 154.9 million (of whom 139.4 million are employed). what is the country's unemployment rate? round your answer to the nearest tenth.
The unemployed labour force is 10 million.(Total labor force - employed labours) ÷ total labor force, (154.9 - 139.4) ÷ 154.9 = 9.6, 10 million after rounding off.
Economic indicators that are used to assess the state of the American labour market include the level of participation and the unemployment rate.
The major distinction between the two is that while the unemployment rate reflects the percentage of people in the labour force who are now unemployed, the participation rate indicates the percent of Americans who are currently in the labour force. The Bureau of Labor Statistics computes both (BLS).
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Nigeria’s real gdp is expected to grow by 5% per year for the next 5 years, and inflation is expected to be 8% per year. If nigeria’s current real gdp is $300 billion, what will its real and nominal gdp be in 5 years? round to the nearest billion.
The real gross domestic product is $383 billion and nominal gross domestic product is $553 billion.
What is Gross Domestic Product?GDP, often abbreviated as gross domestic product, which implies the revenue generated from total goods and services produced in the area over a specific period of time.
Given that,
Expected growth rate is 5% per year.
Expected inflation rate is 8% per year.
Current real GDP is $300 billion.
This implies that growth rate of nominal GDP is 5+8 = 13%.
The real GDP and Nominal GDP can be computed as follows:-
Face Value = Present value (1 + growth rate)^ years
Real GDP after 5 years = 300*1.05^5
= 383 billion
Nominal GDP after 5 years = 300*1.13^5
= 553 billion
Therefore, it can be concluded that real gross domestic product and nominal gross domestic product are 383 billion and 553 billion respectively.
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Have you ever searched for an item on the internet only to have advertisements for similar products pop up on your homepage or social medial accounts for days or weeks? How do you feel when this happens? Do you find it frustrating or helpful? Explain and discuss.
Yes, it is common that when searching for an item on the internet, related ads appear on your social media for days or weeks, which is a digital marketing resource.
What is digital marketing?It corresponds to the set of techniques and strategies that companies implement so that their business has a presence in the online environment. There are several tools that are used in this medium, such as paid traffic, ads on social networks and commercial emails.
So, when an ad happens to appear repeatedly for you, it corresponds to an online traffic tool that helps the company attract customers based on previous searches, which can be useful when you are really interested in purchasing a similar product.
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Yes, it is typical for similar adverts to show up on the social media for days or weeks after conducting an internet search for a product. This is a tool used in digital marketing.
What is internet search?A request submitted to a search engine that produces both sponsored and organic results is known as an internet search, also known as a search query. Paid results are those that are marked as such and show at the top and bottom of the page. The results that show between the advertisements but are unmarked are considered organic results.
People must use your web browser to access a search engine, type one or more keywords, and then press the Enter key on your keyboard to start a search.
Thus, Yes, it is typical for similar adverts to show up on the social media.
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a government-created monopoly arises when a.government spending in a certain industry gives rise to monopoly power. b.the government gives a firm the exclusive right to sell some good or service. c.the government exercises its market control by encouraging competition among sellers. d.the government collects taxes in a particular industry.
A government-created monopoly arises when the government gives a firm the exclusive right to sell some good or service.
A government-granted monopoly, also known as a "de jure monopoly" or "regulated monopoly" in economics, is a type of coercive monopoly in which the government grants a private person or company the exclusive right to be the only supplier of a good or service; potential competitors are barred from the industry by law, regulatory, or other mechanisms of government enforcement.
Government-granted monopolies are seen as a type of coercive monopoly in contrast to unregulated monopolies, in which there is no competition but it is not forcibly barred.
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in a small town of 200 people there are 30 children under 16, 24 retired people, 90 people with full-time jobs, 14 people with part-time jobs, 7 full-time students over 16, and 8 full-time homemakers. the remaining people did not have jobs, but wanted them. all but one of these had actively looked for a job in the previous 4 weeks. what is the unemployment rate in this town? (answer in decimal form)
From the given information, the unemployment rate in this town is 22.38%
Not in labor force = 30 + 24 + 7 + 8 = 69Employed = 90 + 17 = 104
Unemployed = 200 - 69 - 104 = 27
Unemployment Rate = 30 / (104 + 30) = 0.2238 x 100 = 22.38%
The national statistics institute of each country conducts labor-force surveys to calculate the unemployment rate at the national level as well as at state or regional levels. The national unemployment rates of a wide number of nations throughout the world are also calculated and recorded on a continuous basis by organizations like the Organization for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF), and the World Bank.Learn more about Unemployment Rate, here
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if the demand curve for good x shifts from da to d b, then a. firms would be willing to supply less of good x than before at each possible price. b. people’s incomes must have decreased. c. the price of good x has decreased. d. people are willing to buy more of good x than before at each possible price.
If the demand curve for good x shifts from da to db, then people are willing to buy more of good x than before at each possible price.
The demand curve is a graphical depiction of the connection between the cost of a commodity or service and the amount demanded over a specific time period. A common depiction will have the price on the left-hand vertical axis and the amount needed on the right-hand horizontal axis.
The law of demand states that, when all other factors are equal, the quantity desired for a particular good will decrease as its price rises as seen by the demand curve moving from left to right.
Keep in mind that this formulation suggests that quantity is the dependent variable and price the independent variable. The independent variable often appears on the horizontal axis, or x-axis, although economics is an exception.
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suppose you are comparing the income per capita in the united states and ghana. you try two approaches. in the first approach, you convert the ghana values into u.s. dollars using the current exchange rate between the u.s. dollar and the ghanaian cedi. in the second approach, you also convert both values to u.s. dollars using the purchasing power parity-adjusted exchange rate.
By using the purchasing power parity-adjusted exchange rate, which takes into account the relative expenses of each country, you can also convert both numbers to U.S. dollars using the second method.
The purchase of power parity A measure of a currency's purchasing power that accounts for price differences between two countries is known as adjusted exchange rates. The price disparity that exists between the two countries must be taken into account in any accurate estimation of living standards.
A supply chain is utilized to fulfill requests for purchases of products and services, and this process is known as purchasing. Typically, it starts after the procurement team has identified the needs or requirements. A tangible service or stock could be involved. It gears up the procurement division for action. The procurement procedure is also known as the procure-to-pay procedure.
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sam has a tendency to contribute little effort to group assignments, as he thinks others will be sure to pick up the slack in an effort to get a good grade. this is an example of
This is an example of free rider as he is contributing very little effort to group assignments thinking that others will do enough to get good grade.
Anyone who desires everyone else to pay for a common benefit but expects to be able to use it themselves is considered a free rider; if several people are engaged in this behavior, the common good could never be made available.
Because free riders try to utilize the public good without needing to pay for it, markets commonly find it difficult to generate them. The free rider problem can be resolved by taking steps to ensure that those who use a public good pay for it.
Here Sam is expecting others to put all efforts in the project but not contributing his efforts fully, but only to get common benefit, so this is an example of free rider.
The complete question is here:
Sam has a tendency to contribute little effort to group assignments, as he thinks others will be sure to pick up the slack in an effort to get a good grade. Social psychologists would call Sam a
A.) social facilitator.
B.) free loafer.
C.) free rider.
D.) free loader.
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In the ________ activity of scm, organizations choose suppliers to provide the goods, services, and raw materials the company needs to create their product or service.
In the planning activity of supply chain management, organizations choose suppliers to provide the goods, services, and raw materials the company need to create their product or service. Supply chain planning (SCP) can be defined as the forward-looking process of coordinating assets to optimize the delivery of services, goods and information from supplier to customer, balancing supply and demand.
Supply chain management or also known as SCP can be defined as the management of the flow of goods and services includes all processes that transform raw materials into final products between locations and business. Suppliers can be defined as a company, a person or an organization that sells or supplies something such as equipment or goods to customers.
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why do economists also adjust GDP and GNI figures for inflation and the size of the population when considering changes to living standards in a country?
GDP is significant since it provides information on the size and health of an economy. Real GDP growth is frequently used as a gauge of the economy's overall health. In general, a growth in real GNI is seen as a positive indicator of the health of the economy.
Real GDP is preferred by economists over nominal GDP for measuring economic health because real GNI is unaffected by price fluctuations and hence simply captures changes in the volume of output. It is impossible to tell whether higher pricing or increased production is to blame for an increase in the nominal GDP.
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if an objective of public policy is to allocate pollution to those factories that face the highest cost of reducing it, then that objective could be achieved by
If an objective of public policy is to allocate pollution to those factories that face the highest cost of reducing it, then that objective could be achieved by corrective tax, but not by regulation.
A coorective tax can be described as a kind of tax that is imposed by the government in order for companies to reduce the use of those products that are harmful to the atmosphere.
As regulation of companies to reduce pollution will be difficult, assigning corrective tax to companies is a better strategy as factories will avoid causing pollution or reduce it due to the corrective tax being imposed.
A corrective tax can be used for avoiding any kind of negative externality that might be harmful.
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gamma inc. has a reputation for paying higher than the prevailing wages in its industry. they do this in order to attract and keep the best talent. gamma inc. is a(n) . a. labor leaders b. incentive leader c. wage leader d. labor relations specialist
gamma inc. has a reputation for paying higher than the prevailing wages in its industry. they do this in order to attract and keep the best talent. gamma inc. is wage leader.
What is wages?
A wage is money paid to an employee by their employer for work completed over a certain amount of time. Wage payments include remunerative payments like prizes and tip payouts as well as compensatory payments like the minimum wage, prevailing wage, as well as annual bonuses. Wages are a component of the costs associated with operating a business. Regardless of the company's profitability, it is a duty to the employee. Payment by wage contrasts with salary, where the employer pays a set sum at regular intervals (such as a week month) regardless of the number of hours worked, commission, where pay is contingent on individual performance, and compensation based just on performance of the company as a whole.
Therefore, the correct option is (C) Wage leader.
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a project that provides annual cash flows of $16,600 for eight years costs $72,000 today. what is the npv for the project if the required return is 7 percent? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The NPV for the project is $22,289.11
Using the given data:
Initial outlay year 0 -$72,000
Cash flows years 1 - 8= $16,600
Required rate of return = 7%
NPV = -$72,000 + $16,500(PVIFA7%, 8) = $22,289.11
What is NPV?
The NPV (Net Present Value) of a project is the PV of the inflows minus the PV of the outflows. Since the cash inflows are an annuity, the equation for the NPV of this project at a 7 percent required return is:
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someone who must decide whether to receive $100 now or $100 one year from now will probably choose , since there is a(n) in waiting to use the money.
Someone who must decide whether to receive $100 now or $100 one year from now will probably choose, since there is time value of money in waiting to use the money.
What is money?
Any tangible object or verifiable record that's also generally held as payment for goods or services as well as the repayment of debts, such as taxes, in a specific nation or socioeconomic setting is referred to as money. Money serves as a medium of exchange, a unit of account, a store of value, and occasionally a benchmark of deferred payment. These are its main distinctions. In the past, money was a market phenomenon that had inherent value as a good; today, almost all financial systems are based on fiat money that has no utility value. After being deemed legal tender by a government or governing agency the case of the US dollar, this means it must be accepted as payment for "all debts, public and private" within the country—it derives its value from social convention.
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What type of decision-support system analysis attempts to predict the impact of changes in the assumptions, that is, the input data, on the proposed solution?.
What-if analysis of decision-support systems aims to foresee the effects of adjustments to the assumptions, or the input data, on the suggested answer.
A decision support system (DSS) is an information system that helps a corporation make decisions that call for discretion, analysis, and a plan of action. An organization's mid- and high-level management benefits from the information system's analysis of massive amounts of unstructured data and collection of data that can aid in input data problem-solving and decision-making. A DSS can be automated, run by people, or use a combination of both.
By collecting and input data, a decision support system generates comprehensive information reports. A decision-support systems hence differs from a conventional operations application, whose objective is to gather data rather than analyze it.
A decision-support systems is used by planning departments in an organization, like the operations department, to gather data and provide reports that management can utilize to make decisions. A DSS is primarily used for sales projection, for data on inventory and operations, and to deliver information to clients in an understandable way.
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in which step of the price setting process would a new-product manager decide whether to adopt an at-market or a below-market pricing strategy for a new product she is about to introduce to the market?
Selecting an approximate price level is step of the price setting process would a new-product manager decide .
What is pricing methods in marketing?Pricing method is exercised to decide the cost of the producer offerings to both the manufacturer and the customer. The pricing is based on the company's average prices, and the buyer's perceived value of an item, as comparison to the perceived value of the competitors product.
What Is Price Level?Price level is the average of present prices across the entire spectrum of goods and services manufactured in an economy. In more simple terms, price level define to the price or cost of a good, service, or security in the economy.
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the costs of direct materials, direct labor, and overhead for partially completed products are known as: multiple choice conversion costs. cost of goods sold. raw materials inventory. work in process inventory. finished goods inventory.
Work-In-Process Inventory consist of costs of direct materials, direct labor, and overhead for partially completed products. So, the correct answer is (c).
Materials which have been partially finished during the manufacturing process have been identified as work-in-progress inventory. While they might be placed to one side in a buffered storage area, such goods are generally located in the manufacturing area. Since raw materials are typically introduced at the commencement of the conversion process, the cost of the work-in-progress generally includes the entire raw material costs involved with the obtain a complete.
Work-in-process inventory expenses will also include a portion of the direct labor cost and manufacturing overhead; added expenses for these expenditures will be incurred as part of the remainder process of production.
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an investor notices that a company is paying a cash dividend to its stockholders and that today is the record date on which an investor must own the stock to be entitled to the distribution. what means of settlement could the investor use to receive the dividend? a regular-way b buyer's option c cash d when issued
An investor notices that a company is paying a cash dividend to its stockholders and that today is the record date on which an investor must own the stock to be entitled to the distribution.
To be eligible investor for the upcoming dividend payment, you must own a stock before the ex-dividend date. You are not eligible for the following paid dividend if you purchase a stock on or after the ex-dividend date. The total value of all dividends given when a corporation delivers cash dividends to its shareholders reduces the stockholders' equity; nevertheless, the impact of dividends varies based on the type of dividends a firm pays. On the dividend payment day, which is normally 30 to 45 days following the record date, if you are eligible, the dividends are directly credited to your primary bank account associated with your Zerodha account. A reporting business must deduct retained earnings (or any other suitable capital) investor in order to record a dividend. Credit dividends due on the declaration date to the appropriate account (the one from which the dividend will be paid). The total value of all dividends given when a corporation delivers cash dividends to its shareholders reduces the stockholders' equity; nevertheless, the impact of dividends varies based on the type of dividends a firm pays.
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the expected return on bevo stock is 12.6 percent. if the expected return on the market is 10 percent and the beta for bevo is 1.4, then what is the risk-free rate?
The risk-free rate is calculated to be 3.5% if the expected return on Bevo stock is 12.6 percent.
The risk-free rate can be described as the theoretical rate of return on investment with zero risk.
If the expected return on Bevo stock is 12.6% and the expected return on the market is 10%, then the risk-free rate can be calculated as follows;
ER on Bevo stock = Rf + 1.4(ER on market - Rf)
Here ER represents expected return and Rf represents the risk-free rate
Substituting the values;
0.126 = Rf + 1.4(0.1 - Rf)
0.126 = Rf + 0.14 - 1.4Rf
0.126 - 0.14 = Rf - 1.4Rf
Finding the common denominator;
5(Rf)/5 - 7Rf/5 = 0.126 - 0.14
5Rf - 7Rf / 5 = 0.126 - 0.14
-2Rf / 5 = -0.014
-2Rf = 5(-0.014)
-2Rf = -0.07
Rf = (-0.07) ÷ (-2) = 0.035
Converting it into percentage as follows;
Rf = 0.035 × 100 = 3.5%
Hence, the risk-free rate is determined to be 3.5%
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classify each of the given events according to the category that best describes how it affects the equilibrium interest rate in the market for loanable funds.
The classification that most accurately reflects how it influences the equilibrium interest rate in the market for loanable funds.
Increase the interest rate:
Increasing the size of the major investment (it will shift the demand for the loanable fund to the right i.e. the new equilibrium loanable funds will be at a higher interest rate and higher quantity)
Investing tax credits (it will also shift the demand for the loanable fund to the right)
Decrease in the interest rate:
A decline in investor optimism is accompanied with an increase in saving.
The demand for the loanable cash will shift to the loanable funds left and the interest rate will decrease under both options.
The classification that most accurately reflects how it influences the equilibrium interest rate in the market for loanable funds.
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suppose a company charges an annual premium of $100 for an insurance policy for minor injuries. actuarial studies show that in case of an injury claim, the company will pay out an average of $800 for outpatient care and an average of $4000 for an overnight stay in the hospital. they also determine that, on average, each year there are five claims made that result in outpatient care for every 1000 policies and three claims made that result in an overnight stay out of every 1000 policies. what is the expected annual profit of an insurance policy for the company?
The insurance firm (the insurer) and the person(s), company, or other entity being covered have a legal agreement called an insurance policy (the insured).
As per the given question,
Annual Premium = $100
Average of outpatient care = $800
Average of overnight stay = $4000
No. of claims for outpatient care = 5
No. of claims for overnight stay = 3
No. of policies = 1000
First, we need to find out the expected loss.Therefore,
Expected Loss = 800*(5/1000) + 4000*(3/1000)
= 4 + 12
= $16
We know that,
Profit = Income – Loss
= $100 - $16
= $84, but this is for just one policy.
Therefore , for 1000 policies,
Profit = $84*1000
= $84,000
Thus, the expected profit of an annual insurance policy for the company is $84,000.
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