Compute current annual profit
Capital OneData Scientist · Technical Screen
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This question evaluates numerical proficiency in financial arithmetic, unit-aware quantitative reasoning, and per-customer business-metric computation within a loyalty program context.
A loyalty program has 2,000,000 customers. Revenue per customer: annual fee $50; plus 1% commission on average spending of $500 per month. Costs: fixed annual maintenance $250,000,000 and variable $5 per customer per year. Assuming 12 months in a year, compute (a) total annual revenue, (b) total annual cost, (c) total annual profit (revenue − cost), and (d) profit per customer. Show your work and units.
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