1. Identify which of the costs are variable relative to the number of rafters.
2. Identify which of the costs are fixed relative to the number of rafters.
3. Define a product cost and identify which of the costs are product costs.
4. Define a period cost and identify which of the costs are period costs.
5. Restate the Income Statement in a contribution format using GOOD form. (Be sure to specify the current number of rafters.)
6. What number of rafters would be required to breakeven?
7. What actions could Ms. Grear take to improve profitability of her company? (There are several obvious changes.) Would these actions affect breakeven and how?

Revenue Rental Cost of Rafts and Camping Equipment Meals Provided to Rafters Advertising Expenses Compensation Paid to Guides Salary of Office Manager T-shirts and Hats Provided to Rafters Office Utility Expense Net Income (Loss) $1,048,000 (208,600) (314,400) 50,000) (471,600) ( 16,500) ( 31,440) (3.850) 5 ( 48,390) afts and equipment are rented on an annual basis. Additional rafts and equipment are NOT ble, nor is an allowance provided for early returns. Guides are paid on a commission basis afting trip is for seven (7) days. Ms. Grear's company served 1,048 rafters during the year. Revenue Rental Cost of Rafts and Camping Equipment Meals Provided to Rafters Advertising Expenses Compensation Paid to Guides Salary of Office Manager T-shirts and Hats Provided to Rafters Office Utility Expense Net Income (Loss) $1,048,000 (208,600) (314,400) 50,000) (471,600) ( 16,500) ( 31,440) (3.850) 5 ( 48,390) afts and equipment are rented on an annual basis. Additional rafts and equipment are NOT ble, nor is an allowance provided for early returns. Guides are paid on a commission basis afting trip is for seven (7) days. Ms. Grear's company served 1,048 rafters during the year