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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 5.40 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. Data on two representative customers follow. 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 = c. Comercent of deposits; operating costs are 4 percent (=$18,000,000/$450,000,000) 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. Data on two representative customers follow. 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 (=$18,000,000/$450,000,000) 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. Compute RSB\&T's operating profits. 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 (=$18,000,000/$450,000,000) 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. 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 (=$18,000,000/$450,000,000) of deposits. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 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 (=$18,000,000/$450,000,000) 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. 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.)
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