LMN Excercise, Inc. manufactures portable infrared saunas. It markets and sells them to gyms and spas who in turn sell them to their individual customers. The company has a generic model but also manufactures customer-specified models, especially for gyms. The cost activities and their respective rates in the company's activity-based costing system are as follows:

Cost activity	Activity rate
Design to customer specifications	$287 each design
Order processing	$211 per order
Customer service	$470 per client
Direct support labor	$19.80 per hour of labor

Management has asked you for a profitability analysis of customer Z. You have been provided with the following information regarding this customer's orders over the past 12 months. Direct labor rate: $21/hour

	Generic model	Model with specifications
Number of saunas	10	4
Number of orders	2	1
Number of designs with specifications	0	4
Direct labor for each sauna	32 hours	36 hours
Sales prices per sauna	$1,990	$2,830
Cost of materials per sauna	$580	$643

Required: Calculates the margin or profitability of customer Z.