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Jeff Willis Has Five Kids and More Debt Than the Average

question 44

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Jeff Willis has five kids and more debt than the average family.What method would probably be the best method for him to use to calculate his insurance needs?


Definitions:

Variable Cost

Variable cost refers to expenses that change in proportion to the activity of a business, such as costs for raw materials or production that increase or decrease based on the volume of production.

Fixed Cost

Costs that do not change with the volume of production, such as rent, salaries, and insurance premiums.

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