please answer no copy paste and show full workingrance company received the following profitability analysis of its services:Auto InsuranceS10.000,000(2,000,000)(7.300,000)(500,000)$.200.000Home Insurance$3.000,000(600,000)(2.000,000)(500,000)(S 100.000)Life Insurance$5,000,000RevenuesCommissions(1,000,000)PaymentsFixed Costs(3,000,000)(500,000500,000ProfitFixed costs are distributed, what is the profitability of the remaining services if the company adopts apolicy to drop any service with losses?

Introduction:- Fixed costs are cannot be avoided. Fixed costs are distributed remaining…

Answered: Fixed costs are distributed, what is…

Fixed costs are distributed, what is the profitability of the remaining services if the company adopts a policy to drop any service with losses?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

please answer no copy paste and show full working
rance company received the following profitability analysis of its services:
Auto Insurance
S10.000,000
(2,000,000)
(7.300,000)
(500,000)
$.200.000
Home Insurance
$3.000,000
(600,000)
(2.000,000)
(500,000)
(S 100.000)
Life Insurance
$5,000,000
Revenues
Commissions
(1,000,000)
Payments
Fixed Costs
(3,000,000)
(500,000
500,000
Profit
Fixed costs are distributed, what is the profitability of the remaining services if the company adopts a
policy to drop any service with losses?

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