Proctss Activity An alysit for a Service Company 5tatewide insumance compony has a process for making payments on insurance claims as follows: An activity analysis revealed thet the cost of these activibes was as follows: This process inctudes only the cost of processing the ciam payments, not the actual amount of the claim payments. The adjusting activity involves verifing and estimating the ambunt of the cibim and is variable to the number of claims adjusted. The precess received, adjunted, snd pald 5,400 claims during the period, All elaims were treated icentichiv in this process. To improve the cost of this process, managenent has determined that claims should be segregated into two categeries. Claims under st,000 and daims greater than s1,000: elaime under $1,000 would not be adjusted but would be accepted upon the insured's evidence of claim, claims above s1,000 would be adfulted. It is ertimated that 70\% of the ciama are under 11,000 and would thus be paid without adfuttment. It is also estimated that the additional effert to segregate claims would add Ss to the "receiving ciaim" activity cost. a. Develop a table showing the percent of individual sctivity cont to the total process cost. Round the percents to the nearest whole number, if required. Statewide Insurance Company Individual activity cost to the total precess cett per poid dim blank- the the minhon ogn to indcate an adsecinal cost in the last column Statewide 1asurance Cempany Chanoes in the activily cests fer dait elaim Proctss Activity An alysit for a Service Company 5tatewide insumance compony has a process for making payments on insurance claims as follows: An activity analysis revealed thet the cost of these activibes was as follows: This process inctudes only the cost of processing the ciam payments, not the actual amount of the claim payments. The adjusting activity involves verifing and estimating the ambunt of the cibim and is variable to the number of claims adjusted. The precess received, adjunted, snd pald 5,400 claims during the period, All elaims were treated icentichiv in this process. To improve the cost of this process, managenent has determined that claims should be segregated into two categeries. Claims under st,000 and daims greater than s1,000: elaime under $1,000 would not be adjusted but would be accepted upon the insured's evidence of claim, claims above s1,000 would be adfulted. It is ertimated that 70\% of the ciama are under 11,000 and would thus be paid without adfuttment. It is also estimated that the additional effert to segregate claims would add Ss to the "receiving ciaim" activity cost. a. Develop a table showing the percent of individual sctivity cont to the total process cost. Round the percents to the nearest whole number, if required. Statewide Insurance Company Individual activity cost to the total precess cett per poid dim blank- the the minhon ogn to indcate an adsecinal cost in the last column Statewide 1asurance Cempany Chanoes in the activily cests fer dait elaim