Most people will choose the Castor Standard, which is the lower cost to save money in their pocket. Castor Collins will like to make changes to Castor Enhanced since it already have the preexisting medical condition coverage to accommodate the conditions of the employees. Castor Collins will to it make changes to the premium with the company only paying a certain amount for each employee. The plan could work, but is not saying that it will benefit the company. So the return to the company will be lower as well.
Since the Walton Work Wear line is in the production stage, its accumulated development costs should be capitalized. The Carroway Cool Top has not started it commercial production which would allow the development costs not to be amortized yet. Also interest costs on loans to generate financing for the R&D activates of a product can be capitalized rather than expensed. The capitalization of interest would allow CCL to reduce taxable income in the future when it is more profitable. I would recommend that CCL make the above changes immediately so that the financail statements are not incorrect.
This company shows that a lot of their employees are prone to have many pre-existing conditions and are high risk at different health problems, which only leads to the company having to pay more money for services that are rendered to the employee. What would be best for this company is making a customize plan that not only would benefit the employees at E-editors but also protect Castor Company with any chances of high risk
It is also possible that managers do not adopt maximising behaviour at all, perhaps “satisficing” in response to shareholder discipline or that the policy of the firm is the result of complex interactions between various stakeholders. An For a firm to profit maximise, it would be the case that it sets output where marginal cost is equal to marginal revenue. If an additional unit of output were to be produced beyond this, it would add more to the firm’s costs of production than its revenue, thus reducing profit. The diagram below shows profit maximising output and the corresponding price, read from the demand curve. It also shows some other possible objectives for the firm.
Caledonia Products Integrative Problem Shaneal Gaither, Nicolle Istre, Tara Shulfer, Laura Curry FIN/370 October 8, 2012 Instructor: Chrissy Helbling 1. Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? Caledonia should focus on free cash flow rather than accounting profits. The reason being is because with free cash flow that money coming in can be immediately reinvested into different projects or areas of the firm to start earning higher revenue. By focusing on the incremental cash flows Caledonia can analyze and determine the benefits and the costs to any project.
It takes into account data from “profits, loss, the consumer response and economy”,(Liebler & McConnell, 2008). Not only it is useful to take a feeling of success of an idea and use data to substantiate or disprove. The last tool is the Waiting Line and Queuing Theory tool. In every medical facility my biggest annoyance is waiting for service. It is difficult to accurately determine the amount of people requiring service.
The higher premiums have to be considered first because it affects the customer pool. Increasing premiums might possibly decrease the customer pool by eliminating customers with better health because younger people wish to pay less. When a group is considering on increasing benefits will also decrease profit margin. The profits per policy are profits equals premium minus the probability of illness times the number of individuals that are ill. Feuerman’s new plan of the Caster Enhanced Minor plan, the probability of illness can be eliminated by taking away the high cost of health care
Economic Issues Simulation Paper The economic issues simulation refers to the use of managed care firms that wish to supply health insurance to companies and individuals. The managed care firms incur costs in providing health care services to enrollees, but earn profits or revenue from providing health insurance. In this paper we will discuss the economic issues simulation which focuses on the planning and decisions made by a health maintenance organization (HMO). HMOs can choose to provide or deny coverage to companies and individuals in order to maximize revenues and reduce risks to the organization (University of Phoenix, 2004). About the Company Castor Collins Health Plans (CCHP) is a regional HMO that was founded
Say for instance that the US and the UK were on the same production function, but the U.S. economy were on the flat of the curve with little marginal gain in health at its current level of healthcare spending, then U.S. health outcomes might deteriorate relatively little when expenditures are cut back to the U.K. levels. This would result in substantial cost-saving and an increase in average productivity. But if the U.S. healthcare system lies on