What are the variable costs per transaction

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Problem 1: 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

Problem 2: 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 fixed costs?

Select one:

a. $200,000
b. $40,000
c. $250,000
d. $0

Reference no: EM132716461

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