For property-casualty insurers, loss rates are more predictable for

A. low-severity high-frequency events.
B. low-severity low-frequency events.
C. high-severity high-frequency events.
D. high severity low-frequency events.
E. low severity medium-frequency events.

Ans: A. low-severity high-frequency events.

Business

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A company is considering a project with a cash break-even point of 22,600 units. The selling price is $28 a unit, the variable cost per unit is $13, and depreciation is $14,000. What is the projected amount of fixed costs?

A. $325,000 B. $339,000 C. $342,000 D. $348,000 E. $353,000

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Bonding means insuring a company against loss due to employee theft

Indicate whether the statement is true or false

Business