required: (a) prepare direct customer profitability analysis for each of the four customers. (b) explain why how Semona Bank could use DCPA to increase its profits.

MOMOAT/POF 117V - 2030 QUESTION 3 (10 marks, 18 minutes) Semona Bank would like to determine the price to charge for customer services and which classes of customers should be emphasized or de-emphasized. It has provided details of the activities and the cost drivers relating to those expenses that can be attributed to customers as follows Activity Activity Costs Providing ATM services (R) Activity Activity driver volume Computer processing 4DO DOD Number of transactions 200 000 Issuing Statements 1 300 000 Number of transactions 2 500 000 GOD 000 Collections 1 100 0DO Number of statements 160 000 Number of transactions 100 000 Customer inquiries 660 000 Telephone minutes 600 000 The following are annual information on the four types of customers Personal Cheque Platinum Savings Loans accounts accounts accounts Number of product 7 0DO 28 000 12 000 2 00D ATM transactions 160 000 18 000 20 000 Computer transactions 210 000 1 800 0DO 320 000 200 000 Number of statements 60 000 250 000 140 DO0 50 OOD Number of transactions for collections 40 000 16 000 Telephone minutes BO 000 280 000 160 000 70 00D Annual operating profit contribution Required: Prepare Direct Customer Profitability Analysis for each of the four customers (10 marks) (8 marks; 14 minutes)