1. What differences can you draw between plastic and metal customers?

2. If the bank makes 0.1% profit on every dollar spent, what is the annual profit difference between plastic and metal card customers in the first year?

3. How much would a metal card customer need to spend in order for the metal card to have the same year 1 profitability as plastic card?

4. How would you increase the profitability of metal cards?

Plastic Card vs Metal Card Original Assumptions Card Type Lifetime Card Materials Cost Annual Servicing Cost Average Annual Spend Average Annual Interest Income (Paid by Capital One in Year 1) $10/year $200,000/year $100/year $75 $10/year $220,000/year $40/year $25 Plastic Metal