Question: Answer asap. Requirement 2. Why might USB worry about the profitability of individual customers if the Premier Account product offering is profitable as a whole?

 Answer asap. Requirement 2. Why might USB worry about the profitabilityof individual customers if the Premier Account product offering is profitable as

Answer asap.

a whole? across individual Premier Accounts occur when profits made on someaccounts are The account is highly profitable, while the account is sizablyunprofitable. The account shows a small profit but only because of the

Requirement 2. Why might USB worry about the profitability of individual customers if the Premier Account product offering is profitable as a whole? across individual Premier Accounts occur when profits made on some accounts are The account is highly profitable, while the account is sizably unprofitable. The account shows a small profit but only because of the It is unlikely that will keep paying these high fees and that USB would want them to pay such high fees from a customer relationship standpoint.Hartley Wheeler Farrel Total Revenues Spread revenues on annual basis $ 36.75 $ 25.50 $ 759.00 $ 821.25 Monthly fee charges 0.00 240.00 0.00 240.00 Total revenues 36.75 265.50 759.00 1,061.25 Costs Deposit/withdrawal with teller 105.30 129.60 10.80 245.70 Deposit/withdrawal with ATM 8.40 15.40 11.20 35.00 Deposit/withdrawal on prearranged basis 0.00 7.00 31.50 38.50 Bank checks written 67.20 25.20 8.40 100.80 Foreign currency drafts 74.40 24.80 86.80 186.00 Inquiries 17.60 25.60 9.60 52.80 Total costs 272.90 227.60 158.30 658.80 Operating income (loss) $ (236.15) $ 37.90 $ 600.70 $ 402.45United Savers Bank (USB) is examining the profitability of its Premier Account, a combined savings and checking account. i (Click the icon to view account information.) USB recently conducted an activity-based costing study of its services. It assessed the following costs for six individual services. The use of these services in 2017 by three customers is as follows: (Click the icon to view the costs for the services and customer information.) Assume Hartley and Farrel always maintain a balance above $1,000, whereas Wheeler always has a balance below $1,000. Read the requirements. Requirement 1. Compute the 2017 profitability of the Hartley, Wheeler, and Farrel Premier Accounts at USB. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell. Round your answers to the nearest cent. Use parentheses or a minus sign for operating losses.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!