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Simon estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Simon, the total cost of opening the new branch and remaining open for one year will be

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ayokenny2001

Answer:

See below

Explanation:

Given that;

Fixed cost = $500,000

1,000 new customers account in the first year

Cost, $50 per year to service.

Then,

The total cost of opening the new branch and remaining open for one year

= Fixed cost + Variable cost

= $500,000 + (50 × 100)

= $500,000 + $50,000

= $550,000

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