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 labourhour Order processing $10 per order Customer service $51 per customer Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the |ast12 months: Standard Deluxe Model Model Number of cases 100 10 Number of orders 5 2 Direct labourhours per case 0.25 0.40 Selling price per case $ 30 $ 50 Direct materials cost per case $ 7 $ 10 The company's direct labour rate is $10 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Sales Costs: Direct materials Direct labour Supporting manufacturing Order processing Customer service Customer margin