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120 Marks Al Ain Company makes a specialty product, Model-XR5 and sells them through specialty stores. The company is worried about profitability of a one

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120 Marks Al Ain Company makes a specialty product, Model-XR5 and sells them through specialty stores. The company is worried about profitability of a one of its customers, Palms Trading, and would like to make a profitability analysis for it Palm made the following orders over the last 12 months 10 1 0 Number of products Number of orders Number of custom designs Direct labor-hours per product Selling price per product Direct materials cost per product 28.5 AED 1,650 AED 462 Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting direct labor AED18 per direct labor hour Order processing AED192 per order Custom design processing AED261 per custom design Customer service AED426 per customer The company's direct labor rate is AED 19.00 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Palms. TT TT Paragraph Arial 3 (12pt) E - E.T

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