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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

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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: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour $ 184 per order $ 270 per custom design $ 430 per customer 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Custom Model Design 12 2 2 2 0 2 28.50 31.00 $1,750 $2,360 $ 468 $ 570 The company's direct labor rate is $20 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 nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Recommendation: Click on the Hint link and watch the guided example for this question. It provides a helpful discussion on how to calculate the customer margin. Although you are only required to determine the customer margin amount, consider preparing a customer margin report (on scratch paper) to help you organize the information and calculate the amounts. CAUTION - The guided examples are a great study resource to help you learn the material, but they will not be available on the exam so make sure you are able to do these questions independently. Customer margin This is a numeric cell, so please enter numbers only

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