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. 1 Normal 1 No Spac... Heading 1 Heading 2 AA Paragraph QUESTION 3 (10 marks, 18 minutes) Semena Bank would like to determine the
. 1 Normal 1 No Spac... Heading 1 Heading 2 AA Paragraph QUESTION 3 (10 marks, 18 minutes) Semena Bank would like to determine the price to charge for customer services and which classes of customers should be emphasized or de emphasized. It has provided details of the activities and the cost drivers relating to those expenses that can be attributed to customers as follows Activity costs Activity Activity (R) Activity driver volume Providing ATM services 400 000 Number of transactions 200 000 Computer processing 1 300 000 Number of transactions 2 500 000 Issuing Statements 1 100 000 Number of statements 500 000 Collections 160 000 Number of transactions 100 000 Customer inquiries 660 000 Telephone minutes 600 000 The following are annual information on the four types of customers. Personal Cheque Platinum Savings Loans accounts accounts accounts Number of product 7 000 28 000 12 000 2 000 ATM transactions 0 160 000 18 000 20 000 Computer transactions 210 000 1 800 000 320 000 200 000 Number of statements 60 000 250 000 140 000 50 000 Number of transactions for collections 40 000 8 000 16 000 0 Telephone minutes 80 000 280 000 160 000 70 000 Annual operating profit contribution 500 000 2 000 000 600 000 320 000 Required: Prepare Direct Customer Profitability Analysis for each of the four customers (10 marks)
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