How much liability coverage does the average small need

The answer is: The average annual cost of general liability insurance, regardless of policy limits, is $741 (less than $62 per month), with a median price of $428 (about $36 per month). Most small business owners (54 percent) paid between $400 and $600 for their policies, and 21 percent paid less than $400.

General insurance cost:

1.Photo and video= $275 annually

2.Barber shop=$450 annually

3.Cable,dish installer=$550 annually

4.Small retail store=$750 annually

5.Computer repair=$400 annually

Explanation:

Liability coverage is like contingent liability that may occur in future to reduce that risk we do coverage of that resource doing insurance.

Insurance companies usually charge premium with respect to degree of risk in that industry like shipping industry,they charge high premium and less in health care and Information technology due their low risk.

A (5,250) sold at split-off

B 22,625 continue

C (10,400) sold at split-off

Explanation:

Result for further processing:

quantity ( further process price - raw price) less further processing cost

Product A

13,800 pounds x (29.5 - 24) - 81,150 = (5,250)

Product B

21,500 pounds (24.50 - 18) - 117,125 = 22,625

Product C

5,000 gallon ( 38.5 - 30) - 52,900 = (10,400)

We must understand that the join processing cost are already incurred (sunk) therefore, not relevant. We hould check if the further process increases or not the gross profit.

As B is the only which increase the gross profit we continue the processing. THe other product based on our cost structure are not viable