what is the customer margin? Thermal Rising, Inc., makes paragliders for sale through...
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what is the customer margin?
Thermal Rising, Inc., 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 Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour $198 per order 265 per custom design 430 per customer Management would like an analysis of the profitability ofa particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Standard Custom Design 3 Model Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 14 1 3 C 3 34.00 $1,725 $2,380 442 576 30.50 The company's direct labor rate is $22 per hour Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate caleulations and final answer to the nearest whole dollar amount. Loss amounts should he entered
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