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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 6.10 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. Cost Driver Cost Activity Using ATM Driver Volume 3,800,000 uses Number of uses $ 2,850,000 1,710,000 Visiting branch Number of visits 285,000 visits Processing transaction Number of transactions Total deposits Managing functions 12,540,000 152,000,000 transactions 11,400,000 $712,500,000 in deposits $28,500,000 Total overhead Data on two representative customers follow. Customer A Customer B 100 ATM uses 200 Branch visits 5 20 Number of transactions 40 1,500 Average deposit $6,000 $6,000 Required: a. Compute RSB&T's operating profits. b. Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = 0.50 percent of deposits; operating costs are 4 percent (= $28,500,000/$712,500,000) 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 ar Required A Required B Required C Compute RSB&T's operating profits. Operating profit
Required A Required B Required C Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = {{0.5:#,##0.00}} percent of deposits; operating costs are 4 percent (= $28,500,000/$712,500,000) of deposits. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Profit Per Customer Customer A Customer B
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 Customer B Sales revenue Interest on deposit Total operating cost Customer profit/loss