LS 5 0.88 points eBook References Exercise 7-5 (Algo) Product and Customer Profitability Analysis [LO7-4, LO7-5] 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: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Activity Rate $ 18 per direct labor-hour 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: $ 196 per order $ 266 per custom design $ 418 per customer Selling price per glider Direct materials cost per glider The company's direct labor rate is $18 per hour. Customer margin Standard Model 16 1 0 29.50 $ 1,900 $ 448 Custom Design 2 2 2 32.00 $ 2,450 $ 578 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 ond Customer Profitability Analysis [LO7-4, LO7.5] Thermal Rising. Incorporated, makes paragliders for sale through speckalty sporting goods stores. The company has a standard paralider model, but also makes custom designed paragliders. Management has designed an activity based costing system with the following activily cost pools and activity rates: Management would like an analysis of the profitability of a particular customer, Eig 5ky Outfitters, which has ordered the following products over the last 12 months The company's orect labor rate is $18 per hour. Required: Using the company's activity-based costing syitem, compute the customer margin of Big Sky Outfitters (Round your intermediate coleulotions ond final answer to the nearest whole dolinr amount. Loss amounts should be entered with a minus sign.)