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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 560 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 Cost Driver Cost Driver Volume Using ATM Number of uses $ 2,100,000 2,800,800 uses Visiting branch Number of visits 1,260,000 210,000 visits Processing transaction Number of transactions 9, 240,000 112,000,000 transactions Managing functions Total deposits 8,400,000 5525,000,000 in deposits Total overhead $21,000,000 Data on two representative customers follow Customer B 200 ATH uses Bronch visits Number of transactions Average deposit Customer A 100 5 40 $6,000 ze 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 050 percent of deposits operating costs are 4 percent (-$21,000,000/$525,000,000) of deposits 4 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 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 (= $21,000,000/$525,000,000) 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. Complete this question by entering your answers in the tabs below. Required Required B Required Compute RSBXT's operating profits. Operating profil 8.400.000 Required B 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 (= $21,000,000/$525,000,000) 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. Complete this question by entering your answers in the tabs below. Required A Required B Required 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 ($21,000,000/5525,000,000) of deposits (Do not round intermediate calculations, Round your answers to 2 decimal places.) Profit Per Customer Customer A Customer B Data on two representative customers follow. ATM uses Branch visits Number of transactions Average deposit Customer A 100 5 40 $6,000 Customer 8 200 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 = 050 percent of deposits, operating costs are 4 percent = $21000,000/$525,000,000) 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. Complete this question by entering your answers in the tobs below. Required A Required B Required 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. Los amounts should be indicated by a minus sign.) Customer Customer B Sales revenue Interest on deposit Total operating cost Customer profitloss

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