Stillwater State Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the 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 Issuing monthly statements Processing transactions $400,000 $600,000 Customer inquiries Providing ATM services Total cost $4,100,000 $800,000 $2,240,000 $8,140,000 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 15,000 3,000 2,000 Number of statements issued 450,000 100,000 50,000 Processing transactions 18,000,000 2,000,000 500,000 Number of telephone minutes 1,000,000 600,000 400,000 Number of ATM transactions 1,350,000 200,000 50,000 Number of checking accounts 38,000 8,000 4,000 E Stillwater State Bank 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.