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 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 $ $192$ per order

Custom design processing $ $266$ per custom design

Customer service $ $422$ per customer

Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last $12$ months:

Standard Model Custom Design

Number of gliders $133$

Number of orders $13$

Number of custom designs $03$

Direct labor$-$hours per glider $28\mathrm{.}5034\mathrm{.}00$

Selling price per glider $ $1,825$ $ $2,470$

Direct materials cost per glider $ $462$ $ $584$

The company$$s direct labor rate is $$18$ per hour.

Required:

Using the company$$s activity$-$based costing system, compute the customer margin of Big Sky Outfitters.

Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.Exercise $7-5($Algo$)$ Product and Customer Profitability Analysis $[$L$07-4,$ L$07-5]$

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 designed an activity$-$based costing

system with the following activity cost pools and activity rates:

Activity Cost Pool

Supporting direct labor $ $$18$ per direct labor$-$hour

Order processing $ $$192$ per order

Custom design processing $$266$ per custom design

Customer service $$422$ per customer

Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following

products over the last $12$ months:

The company's direct labor rate is $$18$ per hour.

Required:

Using the company's activity$-$based costing system, compute the customer margin of Big Sky Outfitters.

Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be

entered with a minus sign.