Perez Bank's startup division establishes new branch banks. Each branch opens with three tellers. Total...
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Perez Bank's startup division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is $ per year. The three tellers combined can process up to customer transactions per year. If a branch does not attain a volume of at least transactions during its first year of operations, it is closed. If the demand for services exceeds transactions, an additional teller is hired and the branch is transferred from the startup division to regular operations.
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What is the relevant range of activity for new branch banks?
Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes or 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?
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