Question: Finally, instead assume that $ 4 0 0 , 0 0 0 of fixed expenses can be avoided if the automobile insurance line is dropped.

Finally, instead assume that $

400, 000

of fixed expenses can be avoided if the automobile insurance line is dropped. However, many people like having their Life and Auto insurance with the same company. Thus, we think that we will lose

15 %

of our Life Insurance sales. What is the financial impact of this decision?

Finally, instead assume that $400,000 of fixed expenses can be avoided

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