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1 HW 0 Saved Help Save & Exit Submit Check my work 1 Problem 11-23A (Algo) Context-sensitive nature of cost behavior classifications LO 11-1, 11-2

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1 HW 0 Saved Help Save & Exit Submit Check my work 1 Problem 11-23A (Algo) Context-sensitive nature of cost behavior classifications LO 11-1, 11-2 its eBook Print Campbell Bank's start-up division establishes new branch banks. Each branch opens with three tellers. Totalteller cost per branch is $94,000 per year. The three tellers combined can process up to 85,000 customer transactions per year. If a branch does not attain a volume of at least 55,000 transactions during its first year of operations, it is closed. If the demand for services exceeds 85,000 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 55,000, 65,000, 75,000, or 85,000 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 Campbell Bank, assuming that the start- up division operates 25, 30, 35 or 40 branches. In this case (the activity base is the number of branches), is the teller cost a fixed or a variable cost? eferences Complete this question by entering your answers in the tabs below. Bar DAHA 1 of 3 !!! Next > 1 of 3 Next > Prev 1 of 3 Next > Help Save & Exit lixed ord variable COSLE Check my Complete this question by entering your answers in the tabs below. Required A Required B Required Determine the amount of teller cost in total and the average teller cost per branch for Campbell Bank, assuming that the start-up division operates 25, 30, 35 or 40 branches. In this case (the activity base is the number of branches), is the teller cost a fixed or a variable cost? 25 30 35 40 No. of Branches Teller costs per branch Total teller cost The teller cost is a

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