Exerclse $7-5($Algo$)$ Product and Customer Profitability AnalysIs $[$LO$7-4,$ LO$7-5]$

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 designed an activity$-$based costing system with the following activity cost pools and activity rates:

$\backslash$table$[[$Activity Cost Pool,Activity Rate$],[$Supporting direct labor,$$16$ per direct labor$-$hour$],[$Order processing,$$192$ per order$],[$Custom design processing,$$266$ per custon design$],[$Customer service,$$422$ per custoner$]]$

Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last $12$ months:

$\backslash$table$[[,$Standard,Custom Design$],[$Number of gliders,Model,$2],[$Number of orders,$11,2],[$Number of custom designs,$1,2],[$Direct labor$-$hours per glider,$6,31\mathrm{.}09],[$Selling price per glider,$26\mathrm{.}50,$$$2,430$