Banco Lusitano is examining the profitability of its premier account to its private customers segment. The bank earns an interest rate spread of 2% (the difference between the rate at which it lends Money and the rate it pays depositors) by lending money for home loan purposes at 6% while customers receive 4% on their average balance. Thus, the bank gain 40 on the interest spread if a depositor has an average premier account balance of 2,000 (2,000 X 0.02 = 40 ).

The premier account allows depositors unlimited use of services such as deposits, withdraws, checking accounts, and foreign currency drafts. Depositors with balances of 1,000 or more receive unlimited free use of services. Depositors with average balances of less than 1,000 pay a fee of 15/month.

The bank recently has implemented activity-based costing to compute the cost of its services. Last year, the use of these services by three customers is as follows:

	Activity cost per driver	Account Usage
Almedia	Barbosa	Cardoso
Deposits/withdraws in the branch	1.80	40	30	5
Deposits/withdraws with ATM	0.60	10	20	30
Bank checks written	6.00	12	4	2
Foreign currency drafts	9.00	6	1	14
Inquiries about account balance	0.75	12	24	8
Average premier account balance		1200	800	25000

Assume Almeida e Cardoso always maintain a balance above 1,000 , whereas Barbosa has a balance below 1,000 during 10 months of the year. Compute the profitability of each account for last year. Comment the results and advise Banco Lusitano regarding its account.