Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes customdesigned paragliders. Management has designed an activitybased costing system with the following activity cost pools and activity rates:

Activity Cost Pool Activity Rate

Supporting direct labor $ per direct laborhour

Order processing $ per order

Custom design processing $ per custom design

Customer service $ 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 months:

Standard Model Custom Design

Number of gliders

Number of orders

Number of custom designs

Direct laborhours per glider

Selling price per glider $ $

Direct materials cost per glider $ $

The companys direct labor rate is $ per hour.

Required:

Using the companys activitybased costing system, compute the customer margin of Big Sky Outfitters.