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

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Exercise 7-5 Product and Customer Profitability Analysis (L07-4, 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 Cont Pool Activity Rate Supporting direct labor $ 22 per direct labor-hour Order processing $ 202 per order Custom design processing $ 259 por custom design Customer service $ 432 per customer 1 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 coat per glider Standard custom Model Design 3 2 3 0 3 29.50 33.00 $1,750 $2,370 $ 4725576 The company's direct labor rate is $20 por 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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