E5-30 (similar to) - X More Info United International Bank (UB) is examining the profitability of its Premier Account, a combined savings and checking account. (Click the icon to view account information.) UIB recently conducted an activity-based costing study of its services. It assessed the following costs for six individual services. The use of these services in 2017 by three customers is as follows: (Click the icon to view the costs for the services and customer information.) Assume Holt and Farrel always maintain a balance above $1,000, whereas Turner always has a balance below $1,000 Depositors receive a 2% annual interest rate on their average deposit. UIB earns an interest rate spread of 3% (the difference between the rate at which it lends money and the rate it pays depositors) by lending money for home-loan purposes at 5%. Thus, UIB would gain $60 on the interest spread if a depositor had an average Premier Account balance of $2,000 in 2017 ($2,000 x 3% = $60). Read the requirements. Requirement 1. Compute the 2017 profitability of the Holt, Turner, and Farrel Premier Accounts at UIB. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Round your answe The Premier Account allows depositors unlimited use of services such as deposits, withdrawals, checking accounts, and foreign currency drafts. Depositors with Premier Account balances of $1,000 or more receive unlimited free use of services. Depositors with minimum balances of less than $1,000 pay a $25-a-month service fee for their Premier Account. Holt Turner Farrel Total Revenues Spread revenues on annual basis Print Done Monthly fee charges x Data Table Total revenues Costs Account Usage Deposit/withdrawal with teller Deposit/withdrawal with ATM Deposit/withdrawal on prearranged basis Bank checks written Activity-Based Cost per "Transaction" $ 2.30 Holt Turner Farrel 41 50 8 Foreign currency drafts 0.80 9 22 14 Inquiries 0.50 0 13 59 Total costs Deposit/withdrawal with teller Deposit/withdrawal with automatic teller machine (ATM) Deposit/withdrawal on prearranged monthly basis Bank checks written Foreign currency drafts Inquiries about account balance Average Premier Account balance for 2017 8.20 11 4 3 Operating income (loss) 12.10 5 2 6 1.50 10 16 6 $ 1,150 $ 725 $ 24,500 Print Done Enter any number in the edit fields and then click Check