(Solved): Exercise 7.5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7.5] Thefmal Rising, Incor ...

Exercise 7.5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7.5] Thefmal 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: \table[[Activity Cost Pool,Activity Rate],[Supporting direct Labor,

,per direct labor-hour],[Order processing,

,per order],[Custom design processing,

,per custon design],[Customer service,

,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: \table[[,Standard Model,Custom Design],[Number of gliders,14,2],[Number of orders,1,2],[Number of custoa designs,0,2],[Direct labor-hours per glider,29.50,34.00],[Selling price per glider,$ 1,9e0,$ 2,440],[Direct materials cost per glider,$ 460,$ 574]] The company's direct labor rate is

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. Customer margin