Exercise $5-5($Algo$)$ Product and Customer Profitability Analysis $[$LO$5-4,$ 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:

Activity Cost Pool

Supporting direct labor

Order processing

Custom design processing

Customer service

Activity Rate

$$20$ per direct labor$-$hour

$$190$ per order

$$253$ per custom design

$$426$ per customer

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 $$18$ 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.

Answer is complete but not entirely correct.