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Exerclse 7 - 5 ( Algo ) Product and Customer Profitabllity Analysls [ LO 7 - 4 , LO 7 - 5 ] Thermal Rising.
Exerclse Algo Product and Customer Profitabllity Analysls LO LO
Thermal Rising. Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard
paraglider model, but also makes customdesigned paragliders. Management designed an activitybased costing system with the
following activity cost pools and activity rates:
Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over
the last months:
The company's direct labor rate is $ per hour.
Requlred:
Using the company's activitybased costing system, compute the customer margin of Big Sky Outfitters.
Note: Round your Intermedlate colculatlons and flnal answer to the nearest whole dollar amount. Loss amounts should be entered
with a minus slgn
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