Calculator Customer inquiries 600,000 1,680,000 Providing automatic teller machine (ATM) services Total cost $6,105,000 Additional data concerning the usage of the activities by the various customers are also Account Balance Low Medium High Number of accounts opened/closed Number of statements issued Processing transactions 22,500 675,000 27,000,000 1,500,000 2,025,000 57,000 4,500 3,000 150,000 75,000 3,000,000 750,000 900,000 600,000 300,000 75,000 12,000 6,000 Number of telephone minutes Number of ATM transactions Number of checking accounts Required: 1. 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 t nearest cent $ 81.4 per 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. $ 6.78 per month 2. Calculate a cost per account by customer category by using activity rates. Round your answers to the nearest cent. Cost Per Account Previous Next Email Instructor Submit Test for All work saved. Calculator WEES se average res per month $ 6.78 per month RK BROSUR coverte co s t your L C 2. Calculate a cost per account by customer category by using activity rates. Round your answers to the nearest cent. Cost Per Account $ 87.37 Low Medium $ 67.50 High 3. Currently, the bank offers free checking to all of its customers. The interest revenues average $90 per account; however, the Interest revenues earned per account by category are $80, $100, and $165 for the low-, medium-, and high-balance 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 per account High-balance customers 4. After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low balance customers. The bank president expressed reluctance to do so, arguing that the low balance customers more than made up for the loss 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. First, calculate the profits from loans, credit cards, and other products by customer category (using ABC data). Next, compare 50% of the cross-sales pronts from low balance customers with the total loss from the low-balance checking accounts. If the cross-sales profits are than the loss, the president's argument has merit Previous Next Email instructor | Submit Test for Gradie All work saved. Calculator Customer inquiries 600,000 1,680,000 Providing automatic teller machine (ATM) services Total cost $6,105,000 Additional data concerning the usage of the activities by the various customers are also Account Balance Low Medium High Number of accounts opened/closed Number of statements issued Processing transactions 22,500 675,000 27,000,000 1,500,000 2,025,000 57,000 4,500 3,000 150,000 75,000 3,000,000 750,000 900,000 600,000 300,000 75,000 12,000 6,000 Number of telephone minutes Number of ATM transactions Number of checking accounts Required: 1. 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 t nearest cent $ 81.4 per 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. $ 6.78 per month 2. Calculate a cost per account by customer category by using activity rates. Round your answers to the nearest cent. Cost Per Account Previous Next Email Instructor Submit Test for All work saved. Calculator WEES se average res per month $ 6.78 per month RK BROSUR coverte co s t your L C 2. Calculate a cost per account by customer category by using activity rates. Round your answers to the nearest cent. Cost Per Account $ 87.37 Low Medium $ 67.50 High 3. Currently, the bank offers free checking to all of its customers. The interest revenues average $90 per account; however, the Interest revenues earned per account by category are $80, $100, and $165 for the low-, medium-, and high-balance 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 per account High-balance customers 4. After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low balance customers. The bank president expressed reluctance to do so, arguing that the low balance customers more than made up for the loss 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. First, calculate the profits from loans, credit cards, and other products by customer category (using ABC data). Next, compare 50% of the cross-sales pronts from low balance customers with the total loss from the low-balance checking accounts. If the cross-sales profits are than the loss, the president's argument has merit Previous Next Email instructor | Submit Test for Gradie All work saved