What type of homeowners policy provides coverage for an older home that has a high replacement cost but is located in a neighborhood with low market values?
A) HO-2
B) HO-3
C) HO-5
D) HO-8
Ans: D) HO-8
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Value Electronics uses a standard part in the manufacture of different types of radios
The total cost of producing 25,000 parts is $95,000, which includes fixed costs of $40,000 and variable costs of $55,000. The company can buy this part from an external supplier for $3 per unit and avoid 20% of the fixed costs. If Value Electronics decides to outsource the production of the part, how will it impact its operating income? A) Operating income increases by $12,000. B) Operating income decreases by $12,000. C) Operating income increases by $20,000. D) Operating income decreases by $20,000.
Often, a service problem arises from a customer's lack of understanding or ineptitude. Which of the following can help to minimize customer failures?
A) giving customers exclusive primary service packages B) redesigning processes to simplify service encounters C) using differential pricing and shared services D) minimizing service intangibility E) working with more customers at the same time