*I need some urgent help on this!*
The Chrismann company is a manufacturer of lawn equipment that it sells through garden centers in a 10-state region of the upper Midwest. To distribute its products, it maintains a fleet of 25 trucks. It also has 18 cars driven by its sales people. The company recently finished a review of its vehicle insurance costs. Records show that the average cost to insure each truck is $960 a year and $725 for each car. Insurance claims filed for the past eight years averaged 31,200 a year. When studied closely, data shows that claims in two of those years were less than $10,000 and for three years exceeded $45,000. The company's executives are considering canceling their vehicle insurance. They want to set up a fund using the money they currently pay to the insurance company. This fund would be used to pay costs of repairs and injuries resulting from any vehicle accidents. 1. If the average costs related to repairs and injuries continue for the next five years, how much will the company save using their new plan? 2. Develop reasons for and against the new plan. If you were an executive, would you be in favor of or opposed to the plan?
