Northwestern Bank $($NB$)$ offers only checking accounts. Customers can write checks and use a network of automated teller machines.

NB earns revenue by investing the money deposited; currently, it averages $4\mathrm{.}1$ percent annually on its investments of those deposits.

To compete with larger banks, NB pays depositors $0\mathrm{.}3$ percent on all deposits. A recent study classified the bank's annual operating

costs into four activities.

Data on two representative customers follow:

ATM uses

Branch visits

Number of transactions

Average deposit

Required:

a$.$ Compute the operating profit for Northwestern Bank.

b$.$ Compute the profit from Emily and Jacob, assuming that customer costs are based only on deposits. Interest costs $=0\mathrm{.}3$ percent of

deposits; operating costs are $3\mathrm{.}2$ percent $(=$$$18,265,\frac{440}{\text{\$}}570,795,000)$ of deposits.

c$.$ Compute the profit from Emily and Jacob, assuming that customer costs are computed using the information in the activity$-$based

costing analysis.

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Compute the operating profit for Northwestern Bank.