They asked me about an insurance company and wanted to know about the premium needed to be charged to breakeven if the insurance company released claims worth $2,000 a person. Had only 1% of insurance company customers filed a claim, what would be that breakeven on the premium? Then she followed up with another fact that it costs $1 per person to do a mail campaign, while only 4% responded and 50% of that converted, what's the new breakeven? On top of that, she asked what I'd need charge in premium if I wanted a profit of $10000 IF we had a fixed cost of $120 person . I’d need to consider the number gotten from last sub-question , when answering this.
