Question: Please help solve with work shown. Bloomington State Bank is analyzing checking account profitability by customer type (this indicates that customers are a cost object).
Bloomington State Bank is analyzing checking account profitability by customer type (this indicates that customers are a cost object). Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different categories and the associated annual costs for all bank activities are as follows: 1. Create a table and calculate the activity rate for each activity; opening \& closing accounts, processing transactions, and ATM services. (1.5 points) 2. Now using the activity rates above, assign the costs to each of the customer categories for each activity and find the total cost per customer cateeorv. 16 nointsi 3. For each customer category, find the cost per account based on the total cost per account category and the \# of checking accounts in that rateann 11 K maintel 4. Based on your analysis above, what customer group should the bank work harder to make happy? Provide support/reasoning for your response, (2 points) Bloomington State Bank is analyzing checking account profitability by customer type (this indicates that customers are a cost object). Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different categories and the associated annual costs for all bank activities are as follows: 1. Create a table and calculate the activity rate for each activity; opening \& closing accounts, processing transactions, and ATM services. (1.5 points) 2. Now using the activity rates above, assign the costs to each of the customer categories for each activity and find the total cost per customer cateeorv. 16 nointsi 3. For each customer category, find the cost per account based on the total cost per account category and the \# of checking accounts in that rateann 11 K maintel 4. Based on your analysis above, what customer group should the bank work harder to make happy? Provide support/reasoning for your response, (2 points)
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