If the Deductible Is $300 and the Co-Payment Is 20

question 55

Multiple Choice

If the deductible is $300 and the co-payment is 20%, on a covered expense of $800 the individual will pay _____ and their insurance company will pay ______.

• A)$300; $500
• B)$300; $400
• C)$400; $400
• D)$500; $300

---

Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing towards covering fixed costs and profit.

Gross Margin

The difference between sales revenue and the cost of goods sold, divided by revenue, expressed as a percentage, indicating the financial health and profitability of a company's core activities.

Net Operating Income

The profit realized from a business's operations after subtracting all operation-related expenses from gross income.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is contributing to the fixed costs and net profit after covering the variable costs.