K Global Savings Bank (GSB) is examining the profitability of its Premier Account, a combined savings and checking account. (Click the icon to view account information.) GSB 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 2020 by three customers is as follows: (Click the icon to view the costs for the services and customer information.) a Assume Robinson and Garrad always maintain a balance above $1,000, whereas Winfield always has a balance below $1,000. Read the requirements. Depositors receive a 2% annual interest rate on their average deposit. GSB 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, GSB would gain $60 on the interest spread if a depositor had an average Premier Account balance of $2,000 in 2020 ($2,000 x 3% = $60). 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 $22-a-month service fee for their Premier Account. 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 2020 "Transaction" Robinson Winfield Garrad 2.70 38 53 4 0.70 9 22 17 0.50 0 14 58 8.10 8 2 12.10 5 1 7 1.50 7 20 6 $ 1,325 $ 850 $ 25,000 3 230 Requirement 1. Compute the 2020 profitability of the Robinson, Winfield, and Garrad Premier Accounts at GSB. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Round your answers to the nearest cent. Use parentheses or a minus sign for operating losses.) Revenues Spread revenues on annual basis Monthly fee charges Total revenues Robinson Winfield Garrad Total Costs Deposit/withdrawal with teller Deposit/withdrawal with ATM Deposit/withdrawal on prearranged basis Bank checks written Foreign currency drafts Inquiries Total costs I Deposit/withdrawal with ATM Deposit/withdrawal on prearranged basis Bank checks written. Foreign currency drafts Inquiries Total costs Operating income (loss) Requirements 1. Compute the 2020 profitability of the Robinson, Winfield, and Garrad Premier Accounts at GSB. sa sts 2. Why might GSB worry about the profitability of individual customers if the Premier Account product offering is profitable as a whole? as 3. What changes would you recommend for GSB's Premier Account?