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Please help me out! I just need the answers, no explinations. G. Sallisaw Savings & Loan offers free checking to all its customers. Overall, the
Please help me out! I just need the answers, no explinations.
G. Sallisaw Savings & Loan offers free checking to all its customers. Overall, the interest revenues average $105 per account; however, the interest revenues earned per account by category are $95, $115, and $180 from the low-, medium-, and high-balance accounts, respectively. Calculate the overall average profit per account. Calculate the average profit per account for each of the three customer categories. Refer to part F for the cost per account by customer category. ABC Profit Measure: Low-balance customers: Medium-balance customers: High-balance customers:Sallisaw Savings & Loan has requested an analysis of checking account profitability by customer type. Customers are categorized according to size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Opening and closing statements $100,000 Issuing monthly statements $150,000 Processing transactions $1,025,000 Customer inquiries $200,000 Providing ATM services $560,000 Total cost $2,035,000 Additional data concerning the usage of the activities by the various customers are also provided: Account Balance Low Medium High Number of accounts opened/closed 7,500 1,500 1,000 Number of statements issued 225,000 50,000 25,000 Number of transactions processed 9,000,000 1,000,000 250,000 Number of telephone minutes 500,000 300,000 200,000 Number of ATM transactions 675,000 100,000 25,000 Number of checking accounts 19,000 4,000 2,000 Sallisaw uses an activity-based costing system. The activity rate for opening and closing statements is based on the number of accounts opened and closed. The activity rate for issuing monthly statements is based on the number of statements issued. The activity rate for processing transactions is based on the number of transactions processed. The activity rate for customer inquiries is based on the number of telephone minutes. The rate for ATM services is based on the number of ATM transactions. Required: If required, round your answers to the nearest cent. When required, use rounded amounts in subsequent computations. A. Calculate the activity rate for opening and closing accounts. 10.00 per account 3. Calculate the activity rate for issuing monthly statements. 0.50 per statement C. Calculate the activity rate for processing transactions. 0.10 per transaction D. Calculate the activity rate for customer inquiries. 0.20 per minute E. Calculate the activity rate for providing ATM services. $ per transaction F. Calculate the cost per account by customer category using the five activity rates. Cost Per Account Low Medium HighStep by Step Solution
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