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Exercise 7-5 (Algo) Product and Customer Profitability Analysis (L07-4, L07-5) Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has

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Exercise 7-5 (Algo) Product and Customer Profitability Analysis (L07-4, L07-5) 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 Activity Rate Supporting direct labor $ 16 per direct labor-hour Order processing $ 196 per order Custom design processing $ 264 per custom design Customer service $ 416 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: 3 Standard Custom Model Design Number of gliders 15 Number of orders 2 Number of custom designs Direct labor-hours per glider 28.50 32.00 Selling price per glider $ 1,825 $ 2,480 Direct materials cost per glider 5.456 $ 576 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, (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Customer margin

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