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Business, 20.12.2019 01:31 pkcfox

Case example: analyzing an affinity credit card (ex . special card only available to members of a specific group) facts:

1) average card balance is $1000.

2) each card has a rate of 15%.

3) membership fee is $20 per card.

4) loss rate is 3%.

5) $25 operating cost per card.

6) $10 affiliation fee per card (cost to the group for access to members).

7) 6.5% cost of funds.

a. how much profit is generated per card?

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