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:

Activity Cost Pool	Activity Rate
Supporting direct labor	$	16	per direct labor-hour
Order processing	$	196	per order
Custom design processing	$	265	per custom design
Customer service	$	424	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	12	3
Number of orders	1	3
Number of custom designs	0	3
Direct labor-hours per glider	30.50	33.00
Selling price per glider	$1,850	$2,420
Direct materials cost per glider	$442	$576

The companys direct labor rate is $22 per hour.

Required:

Using the companys activity-based costing system, compute the customer margin of Big Sky.