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EXERCISE 7-5 Product and Customer Profitability Analysis [LO4, LO5 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 [LO4, LO5 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 Order processing Custom design processing$186 per austom design Customer service $26 per direct labor-hour $284 per order $379 per austomer EXERCISE 7-5 Product and Customer Profitability Analysis [LO4, LO5 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 Order processing Custom design processing$186 per austom design Customer service $26 per direct labor-hour $284 per order $379 per austomer

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