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 5.50 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 banks annual operating costs into four activities:

1) 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 of deposits. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Customer A (Profit Per Customer)

Customer B (Profit Per Customer)

2) 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 profit/loss

Activity Using ATM Visiting branch Processing transaction Managing functions Cost Driver Cost Driver Volume Number of uses Number of visits Number of transactions Total deposits $ 1,575,000 755,000 6,480,000 5,700.000 2,100,000 uses 151,000 visits 81,000, 000 transactions $380,000.000 in deposits Total overhead $ 14,510,000 Data on two representative customers follow: Customer A Customer B ATM uses Branch visits Number of transactions Average deposit 250 20 1,500 $6,100 200 40 $6,100