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Thermal Rising, Incorporated, 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, Incorporated, 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 Rates

Supporting Direct Labor $26 per direct labor hour

Order Processing $284 per order

Customer Design Processing $186 per customer design

Customer Service $379 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 Model

Number of gliders 20 3

Number of orders 1 3

Number of custom designs 0 3

DL hours per glider 26.34 28.00

Selling price $1,850 $2,400

DM cost per glider $564 $634

The companys direct labor rate is $19.50 per hour. 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.)

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