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:

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:

The company's direct labour rate is $$20$ per hour.

Required:

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