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 has designed an activitybased costing system with the
following activity cost pools and activity rates:
Activity Cost Pool
Supporting direct labor $ $ per direct laborhour
Order processing $ per order
Custom design processing $ per custom design
Customer service $ 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 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. Round your intermediate
calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.
Customer margin
