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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.

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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 $1,500

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