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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.

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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 Cest Pool Activity late Supporting direct labor 11 per direct labor hour Order processing $200 per order Custom design processing $ 251 per custom design Customer service $ 422 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 Custom Model Desin Number of eliders Number of orders Number of custom designs 3 Direct labor-hours per glider 28.50 32.00 Selling price per glider $1,600 $2,340 Direct materials cost per glider $ 466 $ 10 1 3 582 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.) 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.) Answer is complete but not entirely correct. Customer margin S 3,089

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