The typical interest-checking account customer at your bank maintains a monthly

balance of $1,250 net of float, writes 34 checks or withdrawals (21 electronic), deposits

four transit checks, cashes two transit checks, makes two deposits (one electronic), and

cashes one on-us check per month. Assume there is one account maintenance for an

account in which checks are not returned and that net indirect expenses apply. Interest

is paid on the account at an annual 1.5 percent rate. Use the unit cost information to

determine whether this account is profitable. Assume the bank collects no service

charges and can again earn 4.5 percent on investable balances net of 10 percent required

reserves