Answer:
Unit cost for Silver $
19.60
Unit cost for Premium $3.52
Explanation:
The calculation of the unit cost is shown below:
(A) (C) (B) (A or C× B) Total cost
Driver Classic Gold Activity Rate Classic Gold
Transactions
processed 20,000 12,000 $0.20 $4,000 $2,400
Number
of statements 20,000 12,000 0.85 $17,000 $10,200
Number
of calls 40,000 60,000 2.00 $80,000 $120,000
ATM transactions 80,000 24,000 1.80 $144,000 $43,200
Total cost
Classic = $4,000 + $17,000 + $80,000 + $144,000 = $245,000
Gold = $2,400 + $10,200 + $120,000 + $43,200 = $175,800
Now unit cost would be
Classic = $245,000 ÷ 12,500 holders = $19.60
Gold = $175,800 ÷ 50,000 holders = $3.52
The classic credit card is assumed as silver whereas gold is a premium credit card
