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

According to the question, each branch has three tellers and the total cost per branch is 96,000. Meaning that we can divide this cost by 3 to get the cost per teller.

96,000 / 3 = $32,000 average teller cost.

To calculate the total cost for different number of branches we multiply the number of branches by 96,000 like so...

96,000 * 10 = $960,000 per year

96,000 * 15= $1,440,000 per year

96,000 * 20 = $1,920,000 per year

96,000 * 25 = $2,400,000 per year

The teller cost is a fixed cost because the total cost per branch does not change.

clm124studentsuwfedu clm124studentsuwfedu · Answer 2 · 2021-09-12T03:50:14+02:00

Answer:

The previous person is correct except that it is a variable cost (at least that is what my McGraw hill connect said was the answer.

Explanation:

According to the question, each branch has three tellers and the total cost per branch is 96,000. Meaning that we can divide this cost by 3 to get the cost per teller.

96,000 / 3 = $32,000 average teller cost.

To calculate the total cost for different number of branches we multiply the number of branches by 96,000 like so...

96,000 * 10 = $960,000 per year

96,000 * 15= $1,440,000 per year

96,000 * 20 = $1,920,000 per year

96,000 * 25 = $2,400,000 per year

The teller cost is a variable cost