Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier HotelLocated on Swifteurrent 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 2001 to begin manufacturing and selling small wooden canoes decorated with symbols hand-painted by Fast Nations people living near the park. Due to the great success of the canoes, the hotel began manufacturing and selling paddles as well in 2003. 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 labourers, Each canoe sells for $500 and each paddle sells for $50. A 2013 fire destroyed the hotels accounting records Homeven a neursystem putinto place before che 3013 season provides the following aggregated dats forthe hotels canos and paddle manufacturing and maristing acurities1. High-Low Cost Estimation Methoda 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 SettingUse CVP analysis to calculate the break-even point in units for:a. The canoe product line only (i.e., single-product setting)b. The paddle product line only (ie, single-product setting)3. Cost-Volume-Profit Analysis, Multiple-Product SettingThe 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 customens. Use CVP analysis to calculate the break-even point in units for both the canoe and paddle product lines combined (i.e., the multiple-product setting).4. Cost Classificationa. Classify the manufacturing costs, marketing costs, and customer service hotline costs either as production expenses or period expenses.b. For the period expenses, further classify them into either selling expenses or general and administrative expenses5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Expenses, Multiple-Product SettingIf both the variable and fixed production expenses (refer to your answer to part I) associated with the canoe product line in creased by 5 percent (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 $96,0002Assume the same sales mix and additional fixed costs as in part 3.6. Margin of SafetyCalculate the hotel's margin of safety (both in units and in sales dollars), assuming it sells 700 canoes and 2.500 paddles next year ignore the suggested change in expenses from part 5

Manufacturing Data: Year Number of Total Canoe Year Number of Total Paddle Canoes Manufacturing Paddles Manufacturing Manufactured Cost Manufactured Costs 2018 250 $106,000 2018 900 $38.500 2017 275 1 15,000 2017 1.200 19.000 2016 240 108.000 |2016 1,000 12.000 2015 310 122.080 2015 1,100 15,500 2014 350 130.000 2011 1,100 56,000 2013 140.000 |2013 1,700 56,500 Marketing Data: Year Number of Total Canoe Number of Total Paddle Canoes Sold Marketing Paddles Sold Marketing Costs 2018 415.080 $ 7,500 2017 2015 2014 10.080 2018