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FirstInternational Bank (FIB) is examining the profitability of its PremierAccount, a combined savings and checking account. FIB recently conducted anactivity-based costing study of its services.

FirstInternational Bank (FIB) is examining the profitability of its PremierAccount, a combined savings and checking account.

FIB recently conducted anactivity-based costing study of its services. It assessed the following costs for six individual services. The use of these services in 2020 by three customers is asfollows:

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Account Usage Activity-Based Cost per "Transaction" Linden Taylor Flynn Deposit/withdrawal with teller $ 2.30 38 55 5 Deposit/withdrawal with automatic teller machine (ATM) 0.90 10 20 15 Deposit/withdrawal on prearranged monthly basis 0.60 0 14 62 Bank checks written 7.90 11 1 4 Foreign currency drafts 11.90 3 2 6 Inquiries about account balance 1.30 7 16 6 Average Premier Account balance for 2020 $ 1,250 $ 925 $ 24,700Linden Taylor Flynn Total Revenues Spread revenues on annual basis Monthly fee charges Total revenues Costs Deposit/withdrawal with teller Deposit/withdrawal with ATM Deposit/withdrawal on prearranged basis Bank checks written Foreign currency drafts Inquiries Total costs Operating income (loss)

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