What might explain the variation in profitability across customers? This is a conceptual question, not a computational...

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What might explain the variation in profitability across customers? This is a conceptual question, not a computational...

What might explain the variation in profitability across customers? This is a conceptual question, not a computational one. Think about the variable costs in the banking industry. Write a few sentences.

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Answer 1

Answer #1

Variable cost is something which is not fixed i.e. it keeps on increasing with the increase in revenue of a business organization.

Now in a banking industry major cost are fixed such as rental, depreciation,etc but few of them are variable also. Examples of variable cost in banking industry are brokerage and commission charges paid to brokers, loan recovery charges paid to loan recovery agents and so on.

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