Value of stock of goods is = $27000 Cost of insurance for $100 is = $1.85 So we can find cost of insurance for $1 by dividing 1.85 from 100. So cost on insurance for $1 = [tex] \frac{1.85}{100} [/tex]
Now we can find cost of stock of good by multiplying total stock of good from cost of insurance of $1. So cost of insurance is = [tex]27000 * \frac{1.85}{100} = 270 * 1.85 = 499.5[/tex]
