Exercise $5-5($Algo$)$ Product and Customer Profitability Analysis $[$LO$5-4,$ LO$5-5]$

Thermal 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 has designed an activity$-$based costing system with the following activity cost pools and activity rates:

$\backslash$table$[[$Activity Cost Pool,Activity Rate$],[$Supporting direct labor,$$20$ per direct labor$-$hour$],[$Order processing,$$194$ per order$],[$Custom design processing,$$269$ per custom design$],[$Customer service,$$430$ 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:

$\backslash$table$[[,\backslash$table$[[$Standard$],[$Model$]],\backslash$table$[[$Custom$],[$Design$]]],[$Number of gliders,$11,2],[$Number of orders,$1,2],[$Number of custom designs,$0,2],[$Direct labor$-$hours per glider,$29\mathrm{.}50,32\mathrm{.}00],[$Selling price per glider,$$1,925,$$$2,430$