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Thermal Rising. Incorporated, makes paragliders for sale through speclalty sporting goods stores. The company has a standard paraglider model, but also makes custom - designed
Thermal Rising. Incorporated, makes paragliders for sale through speclalty sporting goods stores. The company has a standard
paraglider model, but also makes customdesigned paragliders. Management designed an activitybased costing system with the
following actlivity cost pools and actlivity rates:
Activity Cost Pool
Supporting direct labor $ per direct laborhour
Order processing $ per order
Custom design processing $ per custon design
Custoner service $ per custoner
Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over
the last months:
The company's direct labor rate is $ per hour.
Required:
Using the company's actlvitybased 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.
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