The total operating cost of producing services is $125 000 for a loan volume of $12 500 000.What is the average cost of loan production for the bank?
A)0.1%
B)1%
C)10%
D)100%

Question

Quizplus · Accepted Answer

To find the average cost of loan production, we divide the total operating cost by the loan volume and multiply by 100. So, the calculation is: (125 000/12 500 000) x 100 = 1%. Therefore, the answer is choice B.

The Total Operating Cost of Producing Services Is $125 000