Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models:

Activity Cost Pool	Activity Rates
Supporting manufacturing	$	2	per direct labour-hour
Order processing	$	16	per order
Customer service	$	57	per customer

Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months:

	Standard Model			Deluxe Model
Number of cases		160			40
Number of orders		5			2
Direct labour-hours per case		0.25			0.40
Selling price per case	$	36		$	56
Direct materials cost per case	$	13		$	16

The companys direct labour rate is $16 per hour.

Required:

Using the companys ABC system, compute the customer margin of Cell City.

Sales Costs: Direct materials Direct labour Supporting manufacturing Order processing Customer service 0 Customer margin $ 0