Question: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Please show how the answer was computed! Thermal Rising, Inc., makes
Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters.
Please show how the answer was computed!

Thermal Rising, Inc., 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 Activity Rate Supporting direct labor S 26 per direct labor-hour Order processing 5 284 per order Custom design processing 3 186 per custom design Customer service 5 379 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 20 3 Number of orders 1 3 Number of custom designs 0 3 Direct labor-hours per glider 26.35 28.00 Selling price per glider $ 1,850 $2,400 Direct materials cost per glider $ 564 $ 634 The company's direct labor rate is $19.50 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and nal answer to the nearest whole dollar amount.) 9 Answer is complete but not entirely correct. $ 1,997 o
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