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20 Exercise 7-5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7-5] 2 points eBook Hint Print Thermal Rising, Incorporated, makes paragliders for sale through
20 Exercise 7-5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7-5] 2 points eBook Hint Print Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Custom design processing Order processing Activity Rate $18 per direct labor-hour $ 188 per order Customer service $ 258 per custom design $ 426 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Number of gliders Number of orders References Number of custom designs Direct labor-hours per glider Standard Model Custom Design 14 2 27.50 $1,875 $476 2 32.00 $ 2,430 $ 578 Selling price per glider Direct materials cost per glider The company's direct labor rate is $22 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Customer margin Check my work
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