exercise 7-5 (algo) product and customer profitability analysis [lo7-4, lo7-5] thermal rising, inc., 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 poolactivity rate supporting direct labor$22per direct labor-hour order processing$202per order custom design processing$262per custom design customer service$420per 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 modelcustom design number of gliders 16 2 number of orders 1 2 number of custom designs 0 2 direct labor-hours per glider 29.50 33.00 selling price per glider$1,800$2,490 direct materials cost per glider$456$584 the company’s direct labor rate is $22 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.)



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