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Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automated teller machines. RSB&T earns revenue

Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers can write checks and use a network of automated teller machines. RSB&T earns revenue by investing the money deposited; currently, it averages 7.10 percent annually on its investments of those deposits. To compete with larger banks, RSB&T pays depositors 0.50 percent on all deposits. A recent study classified the bank's annual operating costs into four activities. Activity Using ATM Visiting branch Processing transaction Managing functions Total overhead Cost Driver Number of uses Cost $ 4,350,000 Driver Volume 5,800,000 uses Number of visits 2,610,000 435,000 visits Number of transactions Total deposits 19,140,000 232,000,000 transactions 17,400,000 $1,087,500,000 in deposits $43,500,000 Data on two representative customers follow. Customer A Customer B ATM uses 100 200 Branch visits 5 Number of transactions 40 Average deposit $6,000 20 1,500 $6,000 Required: a. Compute RSB&T's operating profits. b. Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = 0.50 percent of deposits; operating costs are 4 percent (= $43,500,000/$1,087,500,000) of deposits. c. Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute RSB&T's operating profits. Operating profit $ 28,275,000 < Required A Required B > > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = {{0.5: #,## 0.00}} percent of deposits; operating costs are 4 percent (= $43,500,000/$1,087,500,000) of deposits. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Profit Per Customer Customer A Customer B $ 156.00 $ 156.00 < Required A Required C > > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign.) Customer A Customer B Sales revenue $ 426.00 $ 426.00 Interest on deposit 30.00 30.00 Total operating cost 204.30 Customer profit/loss $ 191.70 < Required B Required C >

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