National Savings Bank (NSB) is examining the profitability of its Premier Account, a combined savings and checking account. (Click the icon to view account information.) NSB 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 Harvin and Grant always maintain a balance above \$1,000, whereas Turner always has a balance below $1,000 Read the requirements. Requirement 1. Compute the 2017 profitability of the Harvin, Turner, and Grant Premier Accounts at NSB. (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.) National Savings Bank (NSB) is examining the profitability of its Premier Account, a combined savings and checking account. (Click the icon to view account information.) NSB 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 Harvin and Grant always maintain a balance above $1,000, whereas Turner always has a balance below $1,000 Read the requirements. Depositors receive a 2% annual interest rate on their average deposit. NSB 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, NSB would gain $60 on the interest spread if a depositor had an average Premier Account balance of $2,000 in 2017 ($2,0003%=$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 $25-a-month service fee for their Premier Account. Data table Requirements 1. Compute the 2017 profitability of the Harvin, Turner, and Grant Premier Accounts at NSB. 2. Why might NSB worry about the profitability of individual customers if the Premier Account product offering is profitable as a whole? 3. What changes would you recommend for NSB's Premier Account? National Savings Bank (NSB) is examining the profitability of its Premier Account, a combined savings and checking account. (Click the icon to view account information.) NSB 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 Harvin and Grant always maintain a balance above \$1,000, whereas Turner always has a balance below $1,000 Read the requirements. Requirement 1. Compute the 2017 profitability of the Harvin, Turner, and Grant Premier Accounts at NSB. (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.) National Savings Bank (NSB) is examining the profitability of its Premier Account, a combined savings and checking account. (Click the icon to view account information.) NSB 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 Harvin and Grant always maintain a balance above $1,000, whereas Turner always has a balance below $1,000 Read the requirements. Depositors receive a 2% annual interest rate on their average deposit. NSB 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, NSB would gain $60 on the interest spread if a depositor had an average Premier Account balance of $2,000 in 2017 ($2,0003%=$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 $25-a-month service fee for their Premier Account. Data table Requirements 1. Compute the 2017 profitability of the Harvin, Turner, and Grant Premier Accounts at NSB. 2. Why might NSB worry about the profitability of individual customers if the Premier Account product offering is profitable as a whole? 3. What changes would you recommend for NSB's Premier Account
