Statewide Insurance Company has a process for making payments on insurance claims as follows:

An activity analysis revealed that the cost of these activities was as follows:

Receiving claim	$115,200
Adjusting claim	345,600
Paying claim	115,200
Total	$576,000

This process includes only the cost of processing the claim payments, not the actual amount of the claim payments. The adjusting activity involves verifying and estimating the amount of the claim and is variable to the number of claims adjusted.

The process received, adjusted, and paid 7,200 claims during the period. All claims were treated identically in this process.

To improve the cost of this process, management has determined that claims should be segregated into two categories. Claims under $1,000 and claims greater than $1,000: claims under $1,000 would not be adjusted but would be accepted upon the insured's evidence of claim. Claims above $1,000 would be adjusted. It is estimated that 65% of the claims are under $1,000 and would thus be paid without adjustment. It is also estimated that the additional effort to segregate claims would add 15% to the "receiving claim" activity cost.

a. Develop a table showing the percent of individual activity cost to the total process cost. Round the percents to the nearest whole number, if required.

Statewide Insurance Company Individual activity cost to the total process cost

Activities	Activity Cost	Percent of Total Process
Receiving claim	$fill in the blank f46144fc8065020_1	fill in the blank f46144fc8065020_2%
Adjusting claim	fill in the blank f46144fc8065020_3	fill in the blank f46144fc8065020_4%
Paying claim	fill in the blank f46144fc8065020_5	fill in the blank f46144fc8065020_6%
Total	$fill in the blank f46144fc8065020_7	fill in the blank f46144fc8065020_8%

b. Determine the average total process cost per claim payment, assuming 7,200 total claims. Round to the nearest whole dollar. $fill in the blank 859ffffe5ff0fa8_1 per paid claim

c. Prepare a table showing the changes in the activity costs as a result of the changes proposed by management. If an amount is zero, leave the entry box blank. Use the minus sign to indicate an additional cost in the last column.

Statewide Insurance Company Changes in the activity costs

Activities	Activity Cost Prior to Improvement	Activity Cost After Improvement	Activity Cost Saving
Receiving claim	$fill in the blank dfcb02f3cfcbf80_1	$fill in the blank dfcb02f3cfcbf80_2	$fill in the blank dfcb02f3cfcbf80_3
Adjusting claim	fill in the blank dfcb02f3cfcbf80_4	fill in the blank dfcb02f3cfcbf80_5	fill in the blank dfcb02f3cfcbf80_6
Paying claim	fill in the blank dfcb02f3cfcbf80_7	fill in the blank dfcb02f3cfcbf80_8	fill in the blank dfcb02f3cfcbf80_9
Totals	$fill in the blank dfcb02f3cfcbf80_10	$fill in the blank dfcb02f3cfcbf80_11	$fill in the blank dfcb02f3cfcbf80_12

d. Estimate the average cost per claim payment, assuming that the changes proposed by management are enacted for 7,200 total claims. Round to the nearest cent. $fill in the blank 0cfb8efc500c004_1 per paid claim