Integrative Exercise Cost Behavior and Cost-Volume-Pront 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 cance and paddle manufacturing and marketing activities: Manufacturing Data: Number of Total Canoe Canoes Manufacturing Year Manufactured Costs Number of Total Paddle Paddles Manufacturing Year Manufactured Costs 20x9 250 $38,500 20x8 275 49,000 $103,000 128,000 108,000 114,000 141,500 900 1,200 1,000 20x9 20x8 20x7 20X6 20x5 20x7 20x6 20x5 44,000 1,100 1,400 45,500 52,000 Year Manufactured Costs Year Manufactured Costs 20x9 250 20x9 900 $38,500 20x8 275 $103,000 128,000 108,000 20x8 1,200 49,000 20x7 240 20x7 1,000 44,000 20X6 310 114,000 20x6. 1,100 45,500 20X5 350 141,500 20x5 52,000 1,400 1,700 20X4 400 140,000 20X4 66,500 Marketing Data: Number of Total Canoe Canoes Marketing Year Sold Costs Number of Total Paddle Paddles Marketing Year Sold Costs 20x9 250 20x9 900 $7,500 $45,000 43,000 275 20x8 1,200 9,000 20x8 20x7 240 44,000 20x7 8,000 1,000 1,100 20X6 310 51,000 20X6 8,500 2005 350 20x5 1,400 10,000 62,000 60,000 20X4 400 2004 1,700 11,500 5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Costs, Multiple Product Setting If both the variable and fixed production costs (refer to your answer to Requirement 1) associated with the canoe product line increased by 5% (beyond the estimate from the high-low analysis), how many canoes and paddies would need to be sold in order to earn a target Income of $96,0007 Assume the same sales mix and additional fixed costs as in Requirement 3. Canoe target Income units X canoes x paddles Paddle target income units 6. Margin of Safety Calculate the hotel's margin of safety (both in units and in sales dollars) for Many Glacier Hotel, assuming the same facts as in Requirement 3, and assuming that it sells 700 canoes and 2,500 paddles next year. X total MOS units above total BE units $ X MOS in sales dollars