As a loan officer for Allium National Bank, you have been responsible for the bank€™s relationship with USF Corporation, a major producer of remote-control devices for activating television sets, DVDs, and other audio-video equipment. USF has just filed a request for renewal of its $10 million line of credit, which will cover approximately six months. USF also regularly uses several other services sold by the bank. Applying customer profitability analysis (CPA) and using the most recent year as a guide, you estimate that the expected revenues from this commercial loan customer and the expected costs of serving this customer will consist of thefollowing:

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Expected Revenues Interest income from the requested loan? (assuming annualized loan rate of 4%) Loan commitment fee (1%) Deposit management fees Wire transfer tees Fees for agency services Expected Costs Interest paid on deposits (2.50%) customer-? 100,000 Cost of other funds raised 4,500 Account activity costs 3.500Wire transfer costs 4,500 Loan processing costs 180,000 5,000 1,300 12,400 4,500 Recordkeeping costs