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 Canoes Manufacturing Paddles Manufacturing Year Manufactured Costs Manufactured Costs 2012 250 $106,000 2012 900 $38,500 2011 275 115,000 2011 1,200 49,000 2010 240 108,000 2010 1,000 42,000 2009 122,000 1,100 45,500 2008 130,000 1,400 56,000 2007 400 140,000 2007 1,700 66,500 Number of Total Paddle Year 310 350 2009 2008 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 Cost-Volume-Profit Analysis, Multiple-Product Setting The hotel's accounting system data show an average sales mix of approximately 300 canoes and 1,200 paddles each season. Significantly more paddles are sold relative to canoes because some inexperienced canoe guests accidentally break one or more paddles, while other guests purchase additional paddles as presents for friends and relatives. In addition, for this multiple-product CVP analysis, assume the existence of an additional $30,000 of common fixed costs for a customer service hotline used for both canoe and paddle customers. Use CVP analysis to calculate the break-even point in units for both the canoe and paddle product lines combined