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 4.1 percent annually on its investments of those deposits. To compete with larger banks, NB pays depositors 0.3 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Data on two representative customers follow: 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 =0.3 percent of deposits; operating costs are 3.2 percent (=$18,442,400/$576,325,000) 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. Complete this question by entering your answers in the tabs below. Comoute the oberatina orofit for Northwestern Bank. Data on two representative customers follow: 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 =0.3 percent c deposits; operating costs are 3.2 percent (=$18,442,400/$576,325,000) 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. Complete this question by entering your answers in the tabs below. Compute the operating profit for Northwestern Bank. b. Compute the profit from Fmily and Jacob, assuming that customer costs are deposits; operating costs are 3.2 percent (=$18,442,400/$576,325,000) of di c. Compute the profit from Emily and Jacob, assuming that customer costs are costing analysis. Complete this question by entering your answers in the tabs below. Compute the profit from Emily and Jacob, assuming that customer costs are basi percent of deposits; operating costs are 3.2 percent (=$18,442,400/$576,325,0 Complete this question by entering your answers in the tabs below. Compute the profit from Emily and Jacob, assuming that customer costs are compute based costing analysis. Note: Do not round intermediate calculations. Round your answers to 2 decimal place a minus sign. Compute the profit from Emily and Jacob, assuming that customer costs are based only on deposits. Interest costs =03p deposits; operating costs are 3.2 percent (=$18,442,400/$576,325,000) of deposits. Compute the profit from Emily and Jacob, assuming that customer costs are computed using the information in the activity costing analysis. Complete this question by entering your answers in the tabs below. Compute the profit from Emily and Jacob, assuming that customer costs are computed using the information in the activitybased costing analysis. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign
