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The Essential Health Plan markets a product for which it assumed total expenses to equal 92% of premiums. Actual data relating to this product indicate that expenses equal 89% of premiums. This information indicates that the expense margin for this product has:
Suggested Answer: A
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8 comments · newest first
JU
Juan
1 year ago
Not sure, seems like they still overspent overall.
TI
Timothy
1 year ago
89% vs 92%? Simple math, it's a win!
AR
Arlyne
1 year ago
Wait, how is that 3% favorable? I thought it was worse than expected.
DO
Dorsey
1 year ago
Totally agree, it's definitely favorable!
WI
Wilda
1 year ago
The expenses are 89%, so that's a 3% favorable deviation.
KE
Kenneth
1 year ago
Hmm, I'm a little confused about the difference between the Tab ribbon and the List ribbon. I'll need to double-check that part.
LA
Lavonda
1 year ago
I'm feeling a bit lost on this one. All the options seem plausible, but I'm not sure which one is the most compelling benefit to focus on. Maybe I should review the course materials again to refresh my understanding of IT Service Management tools and their key features.
DY
Dyan
1 year ago
This looks straightforward. The fixed overhead capacity variance is the difference between the expected fixed overhead at capacity and the actual fixed overhead. Given the information provided, the answer is $6,000 favorable.