Customers as a Cost Object Security National Bank has requested an analysis of chequing account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Opening and closing accounts Issuing monthly statements S 200,000 300,000 2,050,000 400,000 1,120,000 S4,070,000 transactions Customer inquiries Providing automated teller machine (ATM) services Total cost Additional data concerning the usage of the activities by the various customers are also provided Account Balance Low Medium High 3,000 100,000 Number of accounts opened/closed Number of statements issued Processing transactions Number of telephone minutes Number of ATM transactions Number of chequing accounts 2,000 50,000 18,000,000 2000,000 500,000 400,000 50,000 4,000 15,000 450,000 1,000,000 1,350,000 38,000 600,000 200,000 8,000 Required: Round answers to two decimal places 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining chequing accounts by the total number of accounts. per account per year What is the average fee per month that the bank should charge to cover the costs incurred because of chequing accounts? per month 2. Calculate a cost per account by customer category by using activity rates. Cost Per Account Low Medium High