Assume That ABC Bank Produces Product a for a Corporate

Multiple Choice

Assume that ABC Bank produces product A for a corporate client, while XYZ Bank produces product B for the client. The total operating cost for producing product A is $200 000 and $300 000 for product B. The resulting business volumes for the FI are $7 500 000 for product A and $10 000 000 for product B. What is the total average cost of producing products A and B separately (round to two decimals) ?

A) 5.67 per cent
B) 35 per cent
C) 70.84 per cent
D) 2.86 per cent