Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. Round your answer to the nearest cent.

Der account per year

What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? Round your answer to the nearest cent.

per month

Calculate a cost per account by customer category by using activity rates. Round your answers to the nearest cent.

Cost Per Account

accounts, respectively. Calculate the average profit per account $($average revenue minus average cost from Requirement $1).$ Round your answer to the nearest cent.

per account

Also calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement $2.$ Round to the nearest cent. Use the minus sign to indicate a loss.

Low$-$balance customers

per account

Medium$-$balance customers

$

per account

High$-$balance customers

$!$

per account

up for the los$5$ through cross$-$sales. He presented a survey that showed that $50\%$ of the customers would switch banks if a checking fee were imposed. Explain how you could verify the president's argument by using ABC.

If the cross$-$sales profits are

than the loss, the president's argument has merit.

Customers as a cost object

with the three different customer categories and their associated annual costs are as follows: