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NP 10.2 Death Spiral LO 1 An insurance company has the following profitability analysis of its services: Revenues Commissions Payments Fixed costs Profit K

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NP 10.2 Death Spiral LO 1 An insurance company has the following profitability analysis of its services: Revenues Commissions Payments Fixed costs Profit K Life Insurance 5,000,000 (1,000,0 00) (3,000,0 00) (500,00 0) 500,000 Auto Insurance 10,000,000 (2,000,000) (7,300,000) (500,00 200,000 Home Insurance 3,000,000 (600,000 ) (2,000,0 00) (500,000 0) (100,000) The fixed costs are distributed equally among the services and are not avoidable if one of the services is dropped. What is the profitability of the remain- ing services if all services with losses are dropped?

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