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 PoolActivity RatesSupporting manufacturing$2per direct labour-hourOrder processing$12per orderCustomer service$78per 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 ModelDeluxe ModelNumber of cases$120$20Number of orders$5$2Direct labour-hours per case$0.25$0.40Selling price per case$32$52Direct materials cost per case$9$12

The company's direct labour rate is $12 per hour.

Required:

Using the company's ABC system, compute the customer margin of Cell City.