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Merchant MNO's sales for the day total $20,000. Fifty percent are credit cards, split between Card Red and Card Blue respectively, at 65% and 35% of the card volume. The average ticket is $50. Fees paid are 2% for Card Red and 2.5% for Card Blue and a fee of $0.05 per transaction. What are the fees that MNO will pay to the issuing banks?
Suggested Answer: B
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12 comments · newest first
JO
Josphine
3 months ago
I agree, but I think it might be B. The average ticket makes a difference.
KA
Katina
3 months ago
I feel like the fees add up quickly. I’m leaning towards option C.
JE
Jenelle
3 months ago
This question is tricky! I think I need to calculate carefully.
TR
Tresa
3 months ago
Totally agree, those fees add up fast!
GA
Gayla
3 months ago
Wait, how do we know those percentages are accurate?
AN
Annice
4 months ago
Fees for Card Red are 2%, Card Blue is 2.5%.
OL
Olive
5 months ago
50% of that is credit card sales!
BR
Brynn
5 months ago
MNO's total sales are $20,000.
AR
Arlen
6 months ago
I’m a bit confused about how to split the sales between Card Red and Card Blue. I think it’s 65% for Red and 35% for Blue, but I hope I got that right!
TI
Tiera
6 months ago
If I recall correctly, we need to find the number of transactions too, since the $0.05 fee applies per transaction. That could change the total fees significantly.
RU
Rueben
6 months ago
I think we need to calculate the total credit card sales first, then apply the fees for each card type. I just hope I remember the right formulas!
MA
Marylin
6 months ago
I remember we did a similar question about calculating fees based on sales volume, but I’m not sure how to break down the percentages for each card.