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 $ 20 per direct labor-hour Order processing $ 194 per order Custom design processing $ 253 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 11 2 Number of orders 1 2 Number of custom designs 0 2 Direct labor-hours per glider 30.50 32.00 Selling price per glider $ 1,700 $ 2,330 Direct materials cost per glider $ 468 $ 586

The company's direct labor rate is $22 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.)

Find the Customer Margin:

I have no idea how to find the customer margin. I have been out of school for a very long time and none of this makes any sense.