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Exerclse 7 - 5 ( Algo ) Product and Customer Profitabllity Analysls [ LO 7 - 4 , LO 7 - 5 ] Thermal Rising.

Exerclse 7-5(Algo) Product and Customer Profitabllity Analysls [LO7-4, LO7-5]
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:
Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over
the last 12 months:
The company's direct labor rate is $16 per hour.
Requlred:
Using the company's activity-based 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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