Exercise 10-30 Activity-Based Costing of Customers (LO 10-3, 4) Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automated teller machines. RSB&T earns revenue by investing the money deposited; currently, it averages 7.20 percent annually on its investments of those deposits. To compete with larger banks, RSB&T pays depositors 0.60 percent on all deposits. A recent study classified the bank's annual operating costs into four activities: Activity Using ATM Visiting branch Cost Driver Cost S 1,755,000 2,700,000 uses Driver Volume Number of uses Number of visits Number of transactions Total deposits 157,000 visits 942,000 7,569,000 6,970,000 87,000,000 transactions Managing functions $410,000,000 in deposits Total overhead S 17,236,000 Data on two representative customers follow: Customer A Customer B ATM uses Branch visits Number of transactions Average deposit 260 75 $6,700 310 15 1,800 $6,700 Required: a. Compute RSB&T's operating profits. Operating profit b. Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs 0.60 percent of deposits; operating costs are 6 percent of deposits. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Profit Per Customer Customer B c. Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign.) Customer A Customer B Sales revenue Interest on deposit Total operating cost Customer profit/loss