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 (i.e., the multiple-product setting).

Manufacturing Data:
Year	Number of Canoes Maufactured	Total Canoe Cost		Year	Number of Paddles Manufactured	Total Manufactured Paddle Cost
20x9	250	103,000		20x9	900	38,500
20x8	275	128,000		20x8	1,200	49,000
20x7	240	108,000		20x7	1,000	44,000
20x6	310	114,000		20x6	1,100	45,500
20x5	350	141,500		20x5	1,400	52,000
20x4	400	140,000		20x4	1,700	66,500
Marketing Data:	Number of Canoes Sold	Total Canoe Marketing Costs	Year	Number of Paddles Sold	Total Marketing Paddle Cost
20x9	250	45,000		20x9	900	7,500
20x8	275	43,000		20x8	1,200	9,000
20x7	240	44,000		20x7	1,000	8,000
20x6	310	51,000		20x6	1,100	8,500
20x5	350	62,000		20x5	1,400	10,000
20x4	400	60,000		20x4	1,700	11,500