Exercise $5-5($Algo$)$ Product and Customer Profitability Analysis

$[$L$05-4,$ LO$5-5]$

Thermal Rising, Incorporated, 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:

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:

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

Required:

Using the company's activity$-$based costing system, compute the customer margin

of Big Sky Outfitters.

Note: Round your intermediate calculations and final answer to the nearest whole

dollar amount. Loss amounts should be entered with a minus sign.