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:
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 $19.50 per hour.
Required:
Using the company’s activity based costing system, compute the customer margin of Big Sky Out fitters.
+1(438) 230-5325
support@ibeehomeworksolutions.com
