Rundle Bank's startup division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is

$$98,000$ per year. The three tellers combined can process up to $80,000$ customer transactions per year. If a branch does not attain a

volume of at least $50,000$ transactions during its first year of operations, it is closed. If the demand for services exceeds $80,000$

transactions, an additional teller is hired and the branch is transferred from the startup 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 $50,000,60,000,$

$70,000,$ or $80,000$ 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 Rundle Bank, assuming that the startup

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?