Exercise $7-5($Algo$)$ Product and Customer Profitability Analysis $[$LO$7-4,$ LO$7-5]$

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:

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:

The company's direct labor rate is $$20$ per hour.

Required:

Using the company's activity$-$based 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.$)$Exercise $7-5($Algo$)$ Product and Customer Profitability Analysis $[$LO$7-4,$ LO$7-5]$ 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 following activity cost pools and activity rates: 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: ine company's direct labor rate is $\backslash (\backslash$$ $18\backslash )$ per hour. Required: Using the company's activity$-$based costing system, compute the customer margin of Big Sky Outfitters. $($Round your intermediate calculations and final onswer to the neorest whole dollor amount. Loss amounts should be entered with a minus sign.$)$