(AS 4) Thermal Rising, INC. 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 $26 Per direct labor- Hour

Order Processing $284 Per Order

Custom design processing $186 Per Custom Design

Customer Service $379 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:

Standard Model Custom Design

Number of Gliders 20 3

Number of Orders 1 3

Number of custom designs 0 3

Direct labor-hours per glider 26.35 28.00

Selling price per glider $1,850 $2,400

Direct Materials cost per glider $564 $634

THE COMPANYS direct labor rate is $19.50 per hour.

Using the companys activity-based costing system, compute the customer margin of Big Sky Outfitters.