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3 Exercise 7-5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7-5] 10 points eBook Hint Print Thermal Rising, Incorporated, makes paragliders for sale through
3 Exercise 7-5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7-5] 10 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 designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour $ 182 per order $ 266 per custom design $ 420 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders References Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $22 per hour. Required: 10 1 @ 28.50 $ 1,950 $ 482 3 3 3 34.00 $ 2,470 $ 570 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Note: Round your Intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign. Customer margin
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