combined (i.e., the multiple-product setting). Canoe BE units Paddle BE units canoes paddles 4. Cost Classification a. Classify the manufacturing costs, marketing costs, and customer service hotline costs either as production costs or period costs. All manufacturing costs are costs. All marketing costs and customer hotline costs are costs b. For the period costs, further classify them into either selling expenses or general and administrative expenses. Marketing costs are selling oriented; therefore, the marketing period costs would be further classified as : . Customer hotline costs relate to the customer service section of the value chain and would be further classified as . \begin{tabular}{cccccc} Manufacturing Data & & & & \\ \hline & \begin{tabular}{c} Number of \\ Canoes \end{tabular} & \begin{tabular}{c} Total Canoe \\ Marketing \end{tabular} & & \begin{tabular}{c} Number of \\ Paddles \end{tabular} & \begin{tabular}{c} Total Paddle \\ Marketing \end{tabular} \\ \hline 1 & 250 & $45,000 & 1 & 900 & Costs \\ \hline 2 & 240 & 47,000 & 2 & 1,200 & $7,500 \\ 3 & 275 & 43,000 & 3 & 1,000 & 9,000 \\ 4 & 310 & 51,000 & 4 & 1,100 & 8,000 \\ 5 & 350 & 62,000 & 5 & 1,400 & 8,500 \\ 6 & 380 & 53,000 & 6 & 1,700 & 10,000 \\ 7 & 415 & 68,500 & 7 & 1,720 & 11,500 \\ 8 & 430 & 63,000 & 8 & 1,850 & 11,600 \\ 9 & 450 & 65,000 & 9 & 1,900 & 12,250 \\ 10 & 470 & 67,000 & 10 & 2,020 & 12,500 \\ 11 & 480 & 52,000 & 11 & 2,050 & 13,100 \\ 12 & 500 & 73,000 & 12 & 2,200 & 13,250 \\ \hline \end{tabular} 5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Costs, Multiple- Product Setting 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 6. Margin of Safety (MOS) canoes paddles The total MOS units equal The MOS in sales dollars equals $ 1. High-Low Cost Estimation Method a. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the canoe product line. b. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the paddle product line. 2. Cost-Volume-Profit Analysis, Single-Product Setting Use CVP analysis to calculate the break-even point in units for a. The canoe product line only (i.e., single-product setting) BE units canoes b. The paddle product line only (i.e., single-product setting) BE units paddles Manufacturing Data \begin{tabular}{cccccc} \hline & \begin{tabular}{c} Number of \\ Canoes \end{tabular} & \begin{tabular}{c} Total Canoe \\ Manufacturing \end{tabular} & & \begin{tabular}{c} Number of \\ Paddles \end{tabular} & \begin{tabular}{c} Total Paddle \\ Manufacturing \end{tabular} \\ Year & Manufactured & Costs & Year & Manufactured & Costs \\ \hline 1 & 250 & $103,000 & 1 & 900 & $38,500 \\ 2 & 240 & 115,000 & 2 & 1,200 & 49,000 \\ 3 & 275 & 128,000 & 3 & 1,000 & 44,000 \\ 4 & 310 & 114,000 & 4 & 1,100 & 45,500 \\ 5 & 350 & 141,500 & 5 & 1,400 & 52,000 \\ 6 & 380 & 132,000 & 6 & 1,700 & 66,500 \\ 7 & 415 & 146,500 & 7 & 1,720 & 66,300 \\ 8 & 430 & 132,000 & 8 & 1,850 & 71,750 \\ 9 & 450 & 146,100 & 9 & 1,900 & 72,000 \\ 10 & 470 & 155,000 & 10 & 2,020 & 78,900 \\ 11 & 480 & 136,000 & 11 & 2,050 & 78,200 \\ 12 & 500 & 167,000 & 12 & 2,200 & 84,000 \end{tabular} Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel Using the High-Low Method to Estimate Variable and Fixed Costs active)