Exerclse $7-5($Algo$)$ Product and Customer Profitabllity Analysls $[$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 has designed an activity$-$based costing system with the

following activity cost pools and activity rates:

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:

The company's direct labor rate is $$18$ per hour.

Requlred:

Using the company's activity$-$based costing system, compute the customer margin of Big Sky Outfitters. $($Round your Intermedlote

calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a milnus slgn$.)$

Customer margin