Saved Chapter 07-Homework(E7-4,5,8,9,10,11) Exercise 7-5 Product and Customer Profitability Analysis (LO7-4, LO7-5) 2 Thermal Rising, Inc, 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 1C potnts Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour s 182 per order $ 252 per custon design s 434 per customer eBook 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 Print Standard Custon Model Design References Nusber of gliders Nunber of orders Nunber of custon designs Direct labor-hours per glider Selling price per glider Direct materlals cost per glider 11 29,50 $1,625 $2,340 454 33,00 582 The companys direct labor rate is $18 per hour Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the neerest whole doller amount. Loss amounts should be entered with a minus sign) Customer margin