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 $ 18 per direct labor-hour

Order processing $ 186 per order

Custom design processing $ 254 per custom design

Customer service $ 418 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 14 2

Number of orders 1 2

Number of custom designs 0 2

Direct labor-hours per glider 27.50 33.00

Selling price per glider $ 1,700 $ 2,330

Direct materials cost per glider $ 444 $ 566

The companys direct labor rate is $18 per hour.

Required:

Using the companys 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.)