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. Calculate the unit support cost per policy for new and in-force annuity and life insurance policies using the new allocation bases. In addition, calculate
. Calculate the unit support cost per policy for new and in-force annuity and life insurance policies using the new allocation bases. In addition, calculate the total support costs to be reported by product for each legal business unit entity.
GIBSON INSURANCE COMPANY Number of Policies by Type and Business Unit for this Year Midwest Gibson Compton Total Annuities: New policies In-force policies Subtotal 10,000 45,000 55,000 8,625 36.200 44,825 1,215 4.700 5,915 19,840 85.900 105,740 Life insurance: New policies In-force policies Subtotal Total 1,250 5,600 6,850 61.850 3,450 13,500 16,950 61.775 8,100 31,600 39,700 45.615 12,800 50,700 63,500 169.240 Aggregated Corporate Support Costs for this Year Policy acquisition $ 4,375,000 Customer service 2,426,000 Sales and marketing 4,552,000 Other corporate support 2.567.000 Total $ 13,920,000 Annuities New In-Force Life Insurance New In-Force Support Costs New Basis 5 0.6 Policy acquisition Customer service Sales and marketing Corporate overhead Steps Calls Contacts AUM 2 0.5 10 $50,0 00 0 0.2 0 $50,000 0 0.4 0 $65,000 20 $1,500 GIBSON INSURANCE COMPANY Number of Policies by Type and Business Unit for this Year Midwest Gibson Compton Total Annuities: New policies In-force policies Subtotal 10,000 45,000 55,000 8,625 36.200 44,825 1,215 4.700 5,915 19,840 85.900 105,740 Life insurance: New policies In-force policies Subtotal Total 1,250 5,600 6,850 61.850 3,450 13,500 16,950 61.775 8,100 31,600 39,700 45.615 12,800 50,700 63,500 169.240 Aggregated Corporate Support Costs for this Year Policy acquisition $ 4,375,000 Customer service 2,426,000 Sales and marketing 4,552,000 Other corporate support 2.567.000 Total $ 13,920,000 Annuities New In-Force Life Insurance New In-Force Support Costs New Basis 5 0.6 Policy acquisition Customer service Sales and marketing Corporate overhead Steps Calls Contacts AUM 2 0.5 10 $50,0 00 0 0.2 0 $50,000 0 0.4 0 $65,000 20 $1,500Step by Step Solution
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