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Integrative Exercise Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel Using the High-Low Method to Estimate Variable and Fixed Costs Located on Swiftcurrent Lake
Integrative Exercise Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier Hotel Using the High-Low Method to Estimate Variable and Fixed Costs 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 20X1 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 20X3. 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 20X3 fire destroyed the hotel's accounting records. However, a new system put into place before the 20X4 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 Year Manufactured 20x9 20X8 20X7 20X6 20X5 20X4 Costs Year Manufactured Costs 250 275 240 310 350 400 900 1,200 1,000 1,100 1,400 1,700 $38,500 49,000 44,000 45,500 52,000 66,500 $103,000 20X9 128,000 20X8 108,000 20X7 114,000 20X6 141,500 20X5 140,000 20X4
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