Question: Bender Savings Bank finds that its basic transaction account, which requires a $400 minimum balance, costs this savings bank an average of $2.65 per month in servicing costs (including labor and computer time) and $1.18 per month in overhead expenses. The savings bank also tries to build in a $0.50 per month profit margin on these accounts. What monthly fee should the bank charge each customer? Further analysis of customer accounts reveals that for each $100 above the $400 minimum in average balance maintained in its transaction accounts, Bender Savings saves about 5 percent in operating expenses with each account. For a customer who consistently maintains an average balance of $1,000 per month, how much should the bank charge in order to protect its profit margin?