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Exercise 7-5 (Algo) Product and Customer Profitability Analysis (LO7-4, L07-5] Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company

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Exercise 7-5 (Algo) Product and Customer Profitability Analysis (LO7-4, 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 Supporting direct labor Order processing Custom design processing Customer service $20 Activity Rate per direct labor-hour 5 192 per order $ 264 per custom design $ 428 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Standard Custon Model Design 13 1 0 2 27.50 $1,950 32.00 $2,480 5462 $ 574 Direct materials cost per glider) The company's direct labor rate is $16 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) Cubber marges

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