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Question 4: Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The...

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Question 4: 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 Activity Rate Supporting direct labor $ 16 per direct labor-hour Order processing $186 per order Custom design processing$269 per custom design Customer service $426 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 12 months: Standard Custom Model Design Number of gliders 16 3 Number of orders 2 3 Number of custom designs Direct labor-hours per glider 29,50 33.00 Selling price per glider $1,725 $2,310 Direct materials cost per glider$ 474 $ 568 0 The company's direct labor rate is $16 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters

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