Statewide Insurance Company tas a process for making payments on insurance claims as follows: An activity analysis revealed that the cost of these activities was as follows: This process includes only the cost of processing the claim payments, not the sctual 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 4,000 clams 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 categcties. Claims under $1,000 and elams greater than $1,000: clains under $1,000 would not be adjusted but would be accepted upon the insured's evidence of claim, Claims above $1,000 would be adfusled. It is estimated that 80% of the elaims are under $1,000 and would thus be paid without adjustment. It is also estimated that the additional effort to segregate clams would add 20%, to the "receiving claim" activity cost. a. Devolop a table showing the percent of individuat activity cost to the fotal process cast. b. Determine the average fotal process cost per claim payment, assuming 4,000 fatal clains. c. Prepare a table showing the changes in the activity costs as a resut of the changes proposed by managernent. For those boxes in which you must enter subtracted or negative numbers use a minus sign. W an amount is zero, enter " 0 ". d. Estimate the average cost per claim payment, assuming that the changes proposod by management are enacted for 4.000 total claims. Alound the final answer to the nearest cent. Starting Question a. Develop a table showing the percent of indridual activity cost to the total process cost. b. Determine the average total process cost per claim payment, assuming 4,000 total claims. per paid claim c. Prepare a table showing the changes in the activity costs as a result of the changes proposed by managenent for those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount is zero, enter " O : Final Question d. Eatmate the average cost per claim payment, assuming that the changes proposed by management are enacted for 4,000 fotal clains. Flound the find answer to the nearest cene. per paid daim