Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automat

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Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automat

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Rock Solid Bank And Trust Rsb T Offers Only Checking Accounts Customers Can Write Checks And Use A Network Of Automat 1
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Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automated teller machines. RSB&T earns revenue by investing the money deposited; currently, it averages 5.70 percent annually on its investments of those deposits. To compete with larger banks, RSB&T pays depositors 0.50 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Activity Using ATM Visiting branch Processing transaction Managing functions Total overhead. Cost Driver ATM uses Branch visits Number of transactions Average deposit Number of uses Number of visits Number of transactions Total deposits Data on two representative customers follow. Customer A Customer B 100 5 40 $6,000 200 20 1,500 $6,000 Cost $ 2,250,000 1,350,000 Driver Volume 3,000,000 uses 225,000 visits 9,900,000 120,000,000 transactions. 9,000,000 $562,500,000 in deposits. $22,500,000 Required: a. Compute RSB&T's operating profits. b. Compute the profit from Customer A and Customer 8, assuming that customer costs are based only on deposits. Interest costs = 0.50 percent of deposits; operating costs are 4 percent (= $22,500,000/$562,500,000) of deposits. c. Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis. Complete this question by entering your answers in the tabs below.

activity-based costing analysis. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute RSB&T's operating profits. Operating profit ing that customer costs are computed using the informations <Required A Required B >

Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits.. costs = {{0.5:#,##0.00} } percent of deposits; operating costs are 4 percent (= $22,500,000/$562,500,000) of (Do not round intermediate calculations. Round your answers to 2 decimal places.) Customer A Customer B Profit Per Customer < Required A Required C >

0.50 percent of deposits; operating costs are 4 percent (= $22.500,000/$562,500,000) of deposits. c. Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis. (Do not round intermediate calculations, Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign.) Customer A Sales revenue Interest on deposit Total operating cost Customer profitloss Customer B sna. Rerest Cust < Required B ALGOED
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