Question: 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

Rock Solid Bank and Trust (RSB&T) offers only checking accounts. Customers canwrite checks and use a network of automated teller machines. RSB&T earnsrevenue by investing the money deposited; currently, it averages 6.60 percent annuallyon its investments of those deposits. To compete with larger banks, RSB&T

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 6.60 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 bank's annual operating costs into four activities. Activity Using ATM Visiting branch Processing transaction Managing functions Total overhead Cost Driver Number of uses Number of visits Cost $ 3,600,000 Driver Volume 4,800,000 uses Number of transactions 2,160,000 15,840,000 360,000 visits Total deposits 192,000,000 transactions 14,400,000 $900,000,000 in deposits $36,000,000 Data on two representative customers follow. Customer A Customer B ATM uses 100 200 Branch visits 5 Number of transactions 40 Average deposit $6,000 20 1,500 $6,000 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 (= $36,000,000/$900,000,000) 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. Required A Required B Required C Compute RSB&T's operating profits. Operating profit 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 (= $36,000,000/$900,000,000) of deposits. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Profit Per Customer Customer A Customer B 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.) Sales revenue Interest on deposit Total operating cost Customer profit/loss Customer A Customer B

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