Question: 5 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

 5 Rock Solid Bank and Trust (RSB&T) offers only checking accounts.Customers can write checks and use a network of automated teller machines.

5 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 6.80 percent annually on its Investments of those deposits. To compete with larger banks, RSB&T pays depositors 0.50 percent on all deposits. A recent study classified the 4.28 bank's annual operating costs Into four activities. points Activity Cost Driver Cost Driver Volume Using ATM Number of uses $ 3,900, 080 5, 200, 080 uses Visiting branch Number of visits 2, 340, 909 390,090 visits Processing transaction Number of transactions 17, 160, 080 208, 080, 080 transactions Book Managing functions Total deposits 15, 609, 909 $975,090,eed in deposits Total overhead $39, 090, 0ed References Data on two representative customers follow. Customer A Customer B ATM uses Branch visits 5 20 Number of transactions 48 1,580 Average deposit $6, 090 $6, 080 Required: a. Compute RSB&T's operating profits. b. Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = 0.50 percent of deposits; operating costs are 4 percent (= $39,000,000/$975,000,000) of deposits. c. Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the Information In the activity-based costing analysis. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute RSB&T's operating profits. Operating profit Required A Required B Required C Compute the profit from Customer A and Customer B, assuming that customer costs are based only on deposits. Interest costs = {{0.5:#,#=0.00)) percent of deposits; operating costs are 4 percent (= $39,000,000/$975,000,000) of deposits. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Profit Per Customer Customer A Customer B Required A Required B Required C Compute the profit from Customer A and Customer B, assuming that customer costs are computed using the information in the activity-based costing analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Loss amounts should be indicated by a minus sign.) Customer A Customer B Sales revenue Interest on deposit Total operating cost Customer profitloss

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