C D G H Morrisom State Bank is analyzing checking account profitability by customer type (this indicates that customers are a cost object). Total Bank Activities Opening & closing accounts: $ 300,000 Issuing monthly statements: $ 450,000 Processing transactions $ 3,075,000 3 Customer inquiries (via phone) $ 600,000 ATM services $ 1,680,000 10 Total cost $ 6,105,000 11 12 13 Low Account Balance Medium High 14 of accounts opened/closed- 22,500 4,500 3,000 15 of statements issued 675,000 150,000 75,000 16 Transactions processed 27,000,000 3,000,000 750,000 17 of telephone minutes 1,500,000 900,000 600,000 18 of ATM transactions 2,025,000 300,000 75,000 19 of checking accounts 57,000 12,000 6,000 20 21 1. Calculate the activity rate for each activity below. Must use a formula/calculation in the cell for full credit. (5 points) 22 23 Activity Rate 24 # of accounts opened/closed 25 of statements issued 26 27 Transactions processed #of telephone minutes 28 of ATM transactions 29 30 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 category. (18 points) 31 Low Balance Medium Balance High Balance 32 Opening & closing accounts: 33 bssuing monthly statements: 34 Processing transactions 35 36 37 38 39 40 Customer inquiries (via phone) ATM services Total Cost Per Category 3. For each customer category, find the cost per account based on the total cost per account category and the #of checking accounts in that category. (3 points) Cost per Account 41 Low Balance 42 Medium Balance 43 High Balance 44 45 4. Based on the calculations above, which customer group is most profitable for the bank? Explain why (2) 46 47