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Bloomington State Bank is analyzing checking account profitability by customer type (this indicates that customers are a cost object). Customers are categorized according to the
Bloomington State Bank is analyzing checking account profitability by customer type (this indicates that customers are a cost object). Customers are categorized according to the size of their acoount: low balances, medium balances. and high balances. The activities associated with the three different categories and the associated annual costs for all bank activities are as follows: 1. Create a table and calculate the activity rate for each activity: opening \& closing accounts, processing transactions, and ATM services. (1.5 points) 2. Now using the activity rates above, assign the costs to each of the customer categories for each activity and find the total cost per customer cateqory. (6 points) 3. For each customer category, find the cost per account based on the total cost per acoount category and the \# of checking acoounts in that category. (1.5 points) 4. Based on your analysis above, what customer group should the bank work harder to make happy? Provide supportireasoning for your response. (2 points)
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