Refer to the data in Exercise 10-30.

Required
a. How can RSB&T use the information from the activity-based costing analysis to manage its costs?
b. What does RSB&T need to consider before implementing your suggestions from requirement (a)?

Data From Exercise 10-30:

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 5.2 percent annually on its investments of those deposits. To compete with larger banks, RSB&T pays depositors 0.5 percent on all deposits. A recent study classified the bank’s annual operating costs into four activities:

                                

Data on two representative customers follow: