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 Rate
Supporting direct labor	$ 20	per direct labor-hour
Order processing	$ 198	per order
Custom design processing	$ 267	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 Model	Custom Design
Number of gliders	13	3
Number of orders	1	3
Number of custom designs	0	3
Direct labor-hours per glider	29.50	34.00
Selling price per glider	$ 1,825	$ 2,470
Direct materials cost per glider	$ 446	$ 576

The companys direct labor rate is $22 per hour.