Homeowners Can Obtain $10,000 Coverage for Sewage and Drain Backup

question 29

Multiple Choice

Homeowners can obtain $10,000 coverage for sewage and drain backup damage for approximately:

• A)$50 to $80 per year
• B)$80 to $110 per year
• C)$110 to $140 per year
• D)$140 to $170 per year
• E)$170 to $200 per year

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar that contributes toward covering fixed costs and generating profit.

Fixed Monthly Expenses

Recurring expenses that do not change in amount from month to month, such as rent, salaries, and insurance premiums.

Net Operating Income

Income from operations after deducting operating expenses but before interest and taxes.

Variable Cost Per Unit

The cost that changes in proportion to the level of output or activity, calculated on a per-unit basis.