Question

Bank's start-up division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is three tellers combined can process up to 90,000 customer transactions per year. If a branch does not attain a volume of at least 60,000 transactions during its first year of operations. it is closed. If the demand for services exceeds 90 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations. Required a. What is the relevant range of activity for new branch banks? b. Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 60,000, 80,000, or 90,000 transactions. In this case (the activity base is the number of transactions for a specific branch). Is the teller cost a fixed or a variable cost? c. Determine the amount of teller cost in total and the average teller cost per branch for Seattle Bank, assuming that the start-up division operates 10, 15, 20, or 25 branches. In this case (the activity base is the number of branches). Is the teller cost a fixed or a variable cost? Complete this quéstion by entering your answers in the tabs below. Required ARequired BRequired C Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 60,000, 70,000, 80,000, or 90,000 transactions. In this case (the activity base is the number of transactions for a specific branch). Is the teller cost a fixed or a variable cost? (Round "Average per unit teller cost" to 2 decimal places.) No, of Tra 60 70,000 80,000 90,000 The teller cost is a

Answer 1