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%
B) 35%
C) 70.84%
D) 2.86%