Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Seattle Bank's start-up division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is $96,000 per year. The three

image text in transcribed
image text in transcribed
image text in transcribed
Seattle Bank's start-up division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is $96,000 per year. The 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 90,000 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 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? 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 question by entering your answers in the tabs below. Required A Required B Required What is the relevant range of activity for new branch banks? (Enter the lower end of the relevant range first.) The relevant range is to transactions 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 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 Transactions 60,000 70,000 80,000 90,000 Total teiler cost Average per unit teller cost The teller cost is a my work the teller cost a fixed or a variable cost? Complete this question by entering your answers in the tabs below. d Required A Required B Requiryd os 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? No. of Branches 10 15 20 25 Teller costs per branch Total eller cost The teller cost is a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Disruption In The Audit Market

Authors: Krish Bhaskar, John Flower

1st Edition

0367220660, 978-0367220662

More Books

Students also viewed these Accounting questions

Question

Which atom of each pair is larger? a. Na or Cs b. N or Bi

Answered: 1 week ago

Question

explain the concept of strategy formulation

Answered: 1 week ago