Examlex

Solved

Raymond Estimates the Fixed Costs Associated with Opening a New

question 42

Essay

Raymond estimates the fixed costs associated with opening a new bank branch are $500,000. He estimates the branch will attract 1,000 new customers who will cost $50/year to service each of their accounts. He also expects to generate $100,000 in fees annually from these accounts. What will be the total cost of opening the new branch and remaining open for one year?


Definitions:

Related Questions