Raymond 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 Raymond, the total cost of opening the new branch and remaining open for one year will be
A. $500,000.
B. $550,000.
C. $650,000.
D. $450,000.
E. $605,000.
Answer: B. $550,000.
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Marketing
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