1. Your agent has told you that you need to have 5-15 times your current earnings in Life Insurance. Your agent has described?

a) the combination approach

b) the needs approach

c) the long-term approach

d) the earnings multiple approach

2. A firm with total costs of $1,400,000 and sales of 2,000,000 merges with a smaller firm with a total cost of 700,000 and sales of 1,200,000 million. Calculate the difference in average cost of production expressed in percent>

A. 9 percent b. 6.72 percent c. 15 percent d. 4.37 percent