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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

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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 by investing the money deposited, currently, it averages 6.30 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 Number of visits Number of transactions Total deposits Cost $ 3,150, 1,890,000 13,860,000 12,600,000 $31,500,000 Driver Volume 4,200,000 uses 315.000 visits 168,eee, eee transactions $787,500,000 in deposits Data on two representative customers follow. Customer A 100 Customer ATM uses Branch visits Number of transactions Average deposit 40 $6,000 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(-$31,500,000/$787,500,000) 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

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