Capital One · Product & Business Case
Compute current annual profit
TrueInterview
October 7, 2026 · 1 min read
A rewards program serves 2,000,000 members. Each member generates a $50 yearly fee plus a 1% commission on average monthly spending of $500. The program's costs include fixed annual maintenance of $250,000,000 and variable costs of $5 per member per year. Assuming 12 months in a year, compute (a) total annual revenue, (b) total annual cost, (c) total annual profit (revenue minus cost), and (d) profit per customer. Show your work and include units.
Overview: This question tests numerical skill in financial arithmetic, unit-aware quantitative reasoning, and per-customer business-metric calculations in a loyalty program setting.
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