Local bank does not know how much of its salaries related to cheque processing are fixed and how much are variable. However, total costs have been estimated at $750,000 for processing of 1,000,000 transactions and $850,000 for processing of 1,200,000 transactions.

What are the variable costs per transaction?

Select one:

a. $2.00

b. $0.75

c. $0.71

d. $0.50