Calculating ABC Unit Costs

Perkins National Bank has collected the following information for four activities and two types of credit cards:

Activity Driver Classic Gold Activity Rate ($)
Processing transactions Transactions processed 12,000 7,200 0.20
Preparing statements Number of statements 12,000 7,200 0.95
Answering questions Number of calls 24,000 36,000 4.00
Providing ATMs ATM transactions 48,000 14,400 1.50
There are 5,200 holders of Classic cards and 20,900 holders of the Gold cards.

Required:

Calculate the unit cost (rounded to the nearest cent) for Classic and Gold credit cards.

Unit cost for Classic $
Unit cost for Gold $

The typical consumer's food basket in the base year 2015 is as follows: 30 chickens at $4 each 10 hams at $5 each 10 steaks at $8 each a chicken feed shortage causes the price of chickens to rise to $5.00 each in the year 2016. hams rise to $7.00 each, and the price of steaks is unchanged. a. calculate the change in the "cost-of-eating" index between 2015 and 2016. year cost of the basket 2015 $ 2016 $ instructions: enter your responses rounded to one decimal place. the official cost-of-eating index has by %. b. suppose that consumers are completely indifferent between two chickens and one ham. for this example, how large is the substitution bias in the official "cost-of-eating" index? the in the cost-of-eating index is %. the of inflation in the cost of eating reflects substitution bias.

You are the new chief information officer for the video-game developer, necturus games. the company has recently undergone a major expansion of its primary product, and you must staff up the is department and determine the best way to develop new game "capsules" for the game, "escape velocity."

Your subscription to investing wisely weekly is about to expire. you plan to subscribe to the magazine for the rest of your life, and you can renew it by paying $85 annually, beginning immediately, or you can get a lifetime subscription for $620, also payable immediately. assuming that you can earn 6.0% on your funds and that the annual renewal rate will remain constant, how many years must you live to make the lifetime subscription the better buy?