Ch. Problem 11-23A (Algo) Context-sensitive nature of cost behavior classifications LO 11-1, 11-2 Solomon Bank's start-up division establishes new branch banks. Each branch opens with three tellers. Totalteller cost per branch is $94,000 per year. The three tellers combined can process up to 90,000 customer transactions per year. If a branch does not attain a volume of at least 60,000 transactions during its first year of operations, it is closed. If the demand for services exceeds 90,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations Required a. What is the relevant range of activity for new branch banks? b. Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 60,000, 70,000, 80.000, or 90.000 transactions. In this case (the activity base is the number of transactions for a specific branch), is the taller cost a c. Determine the amount of teller cost in total and the average teller cost per branch for Solomon Bank, assuming that the start-up division operates 20, 25, 30 or 35 branches. In this case the activity base is the number of branches), is the teller cost a fixed or a variable cost? Complete this question by entering your answers in the tabs below. Required Aequired B Required C Required Determine the amount of teller Cosm tocar and the average teller cost per branch for Solomon Bank, assuming that the start- up division operates 20.75, 30 or 35 branches. In this case (the activity base is the number of branches), is the teller cost a fixed or a variable cost? 20 25 30 35 No. of Branches Telier costs per branch Total telier cost The teller cost is a Variable cost