Servicepro provides two kinds of services. during the most recent accounting period, the two service lines produced the following operating results:

service 1 service 2
service revenue $ 110,000 $ 40,000
unit-level materials $ (26,000) $ (8,000)
unit-level labor $ (36,000) $ (20,000)
product-level selling
& administrative costs $ (16,000) $ (9,500)
company wide
facility-level costs $ (4,000) $ (4,000)
net income $ 28,000 $ (1,500)

if the company stops providing service 2:

the company's income will increase by $3,500 per year.
the company's income will decrease by $3,500 per year.
the company's income will increase by $2,500 per year.
the company's income will decrease by $2,500 per year.

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.

One investigating company tracked all credit card purchase during 2012 and measured two variables: (1) the type of credit card used (visa, mastercard, american express, or discover), and (2) the amount (in dollars) of each purchase. identify the level of each variable measured.

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716)