Sallisaw Savings & Loan has requested an analysis of checking account profitability by customer type. Customers are categorized according to size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows:

Opening and closing statements	$100,000
Issuing monthly statements	$150,000
Processing transactions	$1,025,000
Customer inquiries	$200,000
Providing ATM services	$560,000
Total cost	$2,035,000

Additional data concerning the usage of the activities by the various customers are also provided:

Account Balance	Low		Medium		High
Number of accounts opened/closed	7,500		1,500		1,000
Number of statements issued	225,000		50,000		25,000
Number of transactions processed	9,000,000		1,000,000		250,000
Number of telephone minutes	500,000		300,000		200,000
Number of ATM transactions	675,000		100,000		25,000
Number of checking accounts	19,000		4,000		2,000

Sallisaw uses an activity-based costing system. The activity rate for opening and closing statements is based on the number of accounts opened and closed. The activity rate for issuing monthly statements is based on the number of statements issued. The activity rate for processing transactions is based on the number of transactions processed. The activity rate for customer inquiries is based on the number of telephone minutes. The rate for ATM services is based on the number of ATM transactions.

If required, round your answers to the nearest cent. When required, use rounded amounts in subsequent computations.

A. Calculate the activity rate for opening and closing accounts. $fill in the blank 1 per account

B. Calculate the activity rate for issuing monthly statements. $fill in the blank 2 per statement

C. Calculate the activity rate for processing transactions. $fill in the blank 3 per transaction

D. Calculate the activity rate for customer inquiries. $fill in the blank 4 per minute

E. Calculate the activity rate for providing ATM services. $fill in the blank 5 per transaction

F. Calculate the cost per account by customer category using the five activity rates.

	Cost Per Account
Low	$fill in the blank 6
Medium	$fill in the blank 7
High	$fill in the blank 8

G. Sallisaw Savings & Loan offers free checking to all its customers. Overall, the interest revenues average $105 per account; however, the interest revenues earned per account by category are $95, $115, and $180 from the low-, medium-, and high-balance accounts, respectively.

Calculate the overall average profit per account. $fill in the blank 9

Calculate the average profit per account for each of the three customer categories. Refer to part F for the cost per account by customer category.

ABC Profit Measure:
Low-balance customers:	$fill in the blank 10
Medium-balance customers:	$fill in the blank 11
High-balance customers:	$fill in the blank 12