Calculator Integrative Exercise Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel Using the High-Low Method to Estimate Variable and Fixed Costs Located on Swiftcurrent Lake in Glacier National Park, Mary Glacier Hotel was built in 1915 by the Great Northern Railway. In an effort to supplement its lodging revenue, the hotel decided in 20x1 to begin manufacturing and selling small wooden canoes decorated with symbols hand painted by Native Americans living near the park. Due to the great success of the canoes, the hotel began manufacturing and selling paddles as well in 20X3. Many hotel guests purchase a cance and paddles for use in self-guided tours of Swiftcurrent Lake. Because production of the two products began in different years, the canoes and paddles are produced in separate production facilities and employ different laborers. Each canoe sells for $500, and each paddle sells for $50. A 20x3 fire destroyed the hotel's accounting records. However, a new system put into place before the 20x4 season provides the following aggregated data for the hotel's cance and paddle manufacturing and marketing activities: Manufacturing Data: Number of Total Paddle Paddles Manufacturing Year Manufactured Costs Number of Total Canoe Canoes Manufacturing Year Manufactured Costs 20x9 $100,000 20x8 275 128,000 20x7 240 108,000 20x6 310 114,000 20x5 350 141,500 20x4 400 140,000 20x9 20x8 20% 2006 20x5 20x4 900 1,200 1,000 1,100 1,400 1,700 $38,500 49,000 44,000 45,500 52,000 66,500 Marketing Data: Number of Total Canoe Canoes Marketing Year Sold Costs Number of Total Paddle Paddles Marketing Year Sold Costs 20x9 250 $45,000 20x9 900 $7,500 20x8 275 9,000 8,000 310 43,000 44,000 51,000 62,000 60,000 20x7 240 20X6 20x5 350 20x4 400 Required: 20x8 1,200 20X7 1,000 20x5 1,100 20x5 1,400 20x41,700 8,500 10,000 11,500 5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Costs, Multiple- Product Setting If both the variable and fixed production costs (refer to your answer to Requirement 1) associated with the canoe product line increased by 5% (beyond the estimate from the high-low analysis), how many canoes and paddles would need to be sold in order to earn a target income of $96,000? Assume the same sales mix and additional fixed costs as in Requirement 3. Canoe target income units Paddle target Income units 978 x 3,911 x canoes paddles