Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel Located on Swiftcurrent Lake in Glacier National Park, Many Glacier Hotel was built in 1915 by the Great Northern Railway. In an effort to supplement its lodging revenue, the hotel decided in 2003 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 2006. Many hotel guests purchase a canoe 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 2006 fire destroyed the hotel's accounting records. However, a new system put into place before the 2007 season provides the following aggregated data for the hotel's canoe and paddle manufacturing and marketing activities. Manufacturing Data: Number of Total Canoe Number of Total Paddle Canoes Manufacturing Paddles Manufacturing Manufactured Manufactured 250 $106,000 900 $38,500 2011 275 115,000 2011 1,200 49,000 240 108,000 2010 1,000 42,000 2009 310 122,000 2009 1,100 45,500 2008 130,000 2008 1,400 56,000 2007 400 140,000 1,700 66,500 Costs Costs Year 2012 Year 2012 2010 350 2007 Marketing Data: Number of Year Canoes Sold 2012 250 2011 275 2010 240 2009 310 2008 350 2007 400 Total Canoe Marketing Costs $45,000 47,500 44,000 51,000 55,000 60,000 Year 2012 2011 2010 2009 2008 2007 Number of Paddles Sold 900 1,200 1,000 1,100 1,400 1,700 Total Paddle Marketing Costs $7,500 9,000 8,000 8,500 10,000 11,500 Required: 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 perOunit variable costs and total fixed costs for the paddle product time