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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

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 Activity Rate
Supporting direct labor $16 per direct labor-hour
Order processing $202 per order
Custom designing processing $254 per custom design
Customer service $432 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:


Standard
Model
Custom
Design
Number of gliders 13 3
Number of orders 2 3
Number of custom designs 0 3
Direct labor-hours per glider 28.5 34
Selling price per glider $1,650 $2,390
Direct materials cost per glider $480 $576


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.(Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

I'd love any help. I thought I did it correctly and came up with $1518 and it wasnt right, retried and came up with $7998 and still wasn't correct! I'd love to see what im doing wrong.

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