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Cost of opening the new branch and remaining open

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Reference no: EM131719415

Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1250 new customer accounts in the first year, each of which will cost $76 per year to service. He also expects to generate $150,000 per year in revenue. What is the total cost of opening the new branch and remaining open for one year?

Reference no: EM131719415

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