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
Sonali must make sure that she doesn’t spend more than she earns, if she spends more than she earns this could lead to debt and she won’t have no savings and she will have debt. Sonali needs a cheaper form of credit, the reason for this is because is she gets a loan then she would have to pay higher interest so she needs to choose the best one that suits her. This is good for her. If she chooses a good cheaper form of loan then she wouldn’t have to pay
By using this method the income statement shows a higher income due to the lower value of the cost of goods sold. The balance sheet would also show a higher value for the inventory that is on hand. ABC Company wanted to show that their expenses were lower and their income was higher than what it actually was, resulting in a higher retained earnings value at the end of the period. To the public, it would look as though the company is thriving and paying out larger dividends to stockholders. Stockholders may assume when reading the financial statements that they would be receiving a higher return each month or quarter when in reality that would not be the case especially if they are planning on switching to LIFO.
There has two kind of machines an old one and a new one. The new one is more expensive but in a pretty good condition. The old one is not in a good condition and needs additional maintenance but is cheaper. No matter which one they buy, they have to make some changes on HR, rearrange the workers in each step. RECOMMENDATION Buying the old one which costs less money than another.
And how? The moment there is speculation that crude will be trading higher, retailers usually increase their prices in an attempt to keep their margins intact for future purchases. Contrarily, when the price of the crude decreases, retailers are not inclined to lower rates as fast as they have raised it in order to maximize profits.” (Austin, 2011) So you can say when the price of oil is rising, the merchants have a small opportunity to gain a profit. Yet when the prices are low, they utilize this to take a advantage of the situation and delay the lowering of prices at the pump. It might be acceptable from their point of view for this reasoning.
It states that because the costs of healthcare continue to increase so does the number of uninsured which in return increases the costs even more. “Primary care coverage for the uninsured is the first necessary step to reform and can be more cost effective and tolerable than a major system.” (Stephens, J. H., & Ledlow, G. R., 2010). Hospitals and physicians would spend much less on uncompensated care and patient’s health care debts would be much less. The idea of providing basic care as a right for all citizens would not only help the healthcare systems cost issues it would also increase the quality of healthcare. Everyone would then have the availability to preventative services and treatments meaning that less people would be likely to wait to seek medical care for an acute illness and the number of people attending emergency care departments would decrease.
With everything that has been reviewed, I would recommend that CSI lease vs buying right now. The financial returns for the lease option are that it has a higher annual payment and a lower after tax cash flow, but does free up some instant cash and relieves CSI from owner responsibilities on the building. Leasing will also let CSI build up capital to do the end of term buy option without having to have an additional 200,000 of working capital on hand for the bank and will reduce the need for a loan and credit mark. The second option is to
It varies among products because some products may be more essential to the consumer. Products that are necessities or ‘need’ are more insensitive to price changes because no matter what happen, consumers would continue buying these products despite prices increases, even though, consumers might buy less, but overall, it’s least affected by these changes compared to the products that may not be necessary in daily life. Elasticity of demand for Californians for reduction in price from: I. £18 to £16 Price elasticity = %
One of the factors Monsoon would have to consider when deciding at what extent to cut prices would be how much excess supply there is. This is an important factor because if there isn’t that much prices won’t have to be lowered as much because there is less excess supply to get rid of. However if there is a larger amount of surplus stock prices will have to be cut more significantly. In the Monsoon case study there is 5% more surplus clothing which is twice the amount of demand around Christmas time. This means that as there is a substantial amount of excess supply prices should be cut heavily in order to increase the demand for this stock.
If the gross profit falls from one year to the next or is thought to be too low the firm may need to decrease the costs of its purchases or may try to increase the sales without increasing the cost of the goods sold. The same thing applies to the net profit margin if it is too low or falls year on year then the business may need to look for cheaper premises or cut staffing costs. Return on Capital Employed will be used to see if an investment is worth the capital outlay, if the return from the capital outlay is higher than the interest offered by banks for money invested then the outlay is justified. you then have to talk about Liquidity,The Debtors’ and creditors’ and then an overview of it all