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Exercise 7-5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7-5) Thermal Rising, Inc., 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 [LO7-4, LO7-5) Thermal Rising, Inc., 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 $ 22 per direct labor-hour Order processing $ 188 per order Custom design processing $ 271 per custom design Customer service $ 436 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 Direct materials cost per glider Standard Custom Model Design 13 3 1 3 0 3 29.50 33.00 $ 1,925 $2,420 $ 466 $ 578 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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