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Luden [163]
3 years ago
10

A bank determines from an analysis on its deposits that account processing and other operating expenses cost the bank $5.45 per

month. It has also determined that its non-operating expenses on its deposits are $1.70 per month. The bank wants to have a profit margin which is 11 percent of monthly costs. What monthly fee should this bank charge on its deposit accounts
Business
1 answer:
Arte-miy333 [17]3 years ago
4 0

Answer:

$7.94

Explanation:

The computation of the monthly fee that should be charged is given below;

Given that

Operating expense= $5.45

Non operating expense = $1.70

So, Total expense = $7.15

Now

Profit margin = 11% of Total cost

= 11%* of  $7.15

= $0.7865

Now Total fee to be charged

= Total cost + Profit margin

= $7.15 + $0.7865

= $7.9365

= $7.94

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Answer:

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Answer:

Nexium & Associates Journal entries

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Dr Accounts Receivable800

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