=+A number of regional councils (which cover the towns served by the small and large rural branches) have expressed concern over reports that AusBank is considering closing some of its 568 Chapter 14: Measuring and reporting sustainability M14_HORN3377_02_LT_C14.indd 568 2/09/13 3:55 PM rural branches. The councils are threatening to close their accounts with the large rural branches if the small rural branches are closed.

The following information has been gathered for the previous year:

1 2

3 4

5 6

7 8

9 10 11 12 A B C D E F G Activitybased cost per

‘transaction’

Deposit/withdrawals with teller Account inquiries at teller Deposit/withdrawal with automatic teller machine (ATM)*

Telephone banking Internet banking Bank cheques written Foreign currency drafts Total value of deposits

* Small rural branches do not have ATMs

$7.85

$3.15

$3.69

$0.67

$0.15

$13.46

$16.48 Small rural branches Large rural branches excluding Regional council accounts Regional council accounts Suburban branches Total 5 750 6 500 0

200 50 3 500 4 500

$4 000 000 4 000 8 500 3 000 600 150 900 450

$17 500 000 3 000 0

0 0

1 500 1 250 200

$23 600 000 11 000 13 500 18 500 750 3 950 6 250 1 050

$45 100 000 23 750 28 500 21 500 1 550 5 650 11 900 6 200

$90 200 000 Number of transactions Required 1 Calculate the profitability of each customer group