' Homework 0 Saved Exercise 7-5 (Algo) Product and Customer Profitability Analysis [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'paragllders. Manage ment has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost: Pool ; Activity Rate - g .8 Supporting direct labor $ 16 per direct labor-hour ' . Order processing \"S 198 per order Custom design processing $ 254 per custom design Customer service $ 430 per customer Management would like an analy sis of the protability of a particular customer, Big Sky Outtters, which has ordered the following products over the last 12 months: . - I Standard Custom Model Design Number of gliders 14 3 Number o orders 2 3 Number of custom designs 0 3 Direct labor-hours per glider 27.50 31.00 I Selling price per glider $ 1,875 $ 2,440 Direct materials cost. per glider $ 442 3'582 '85 The company's direct labor rate Is $22 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outtters. (Round your intermediate calculations and nal answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) :l