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 designed an activitybased costing system with the following
activity cost pools and activity rates:
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 activitybased 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.
Customer margin
