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let me know if you need any info 1. High-Low Cost Estimation Method a. Use the high-low method to estimate the per-unit variable costs and

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1. High-Low Cost Estimation Method a. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the canoe product line. Variable cost per unit Total fixed cost b. Use the high-low method to estimate the per-unit variable costs and total fixed costs for the paddle product line. Variable cost per unit Total fixed cost 2. Cost-Volume-Profit Analysis, Single-Product Setting Use CVP analysis to calculate the break-even point in units for a. The cande product line only i.e., single-product setting) BE units canoes b. The paddle product line only (.e.,single-product setting) BE units paddles 3. 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 cances because some inexperienced cance 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 cance and paddle product lines combined i.e., the multiple-product setting). Canoe BE units cances Paddle BE units paddles 4. Cost Classification a. Classify the manufacturing costs, marketing costs, and customer service hotline costs either as production costs or period costs. All manufacturing costs are costs. All marketing costs and customer hotline costs are costs b. For the period costs, further classify them into either selling expenses or general and administrative expenses. Marketing costs are selling oriented; therefore, the marketing period costs would be further classified as . Customer hotline costs relate to the customer service section of the value chain and would be further classified as Using the High-Low Method to Estimate Variable and Fixed Costs Located on Swiftcurrent Lake in Glacier National Park, Mary 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 cances decorated with symbols hand painted by Native Americans living near the park. Due to the great success of the cances, the hotel began manufacturing and selling paddles as well in 20X3. Many hotel guests purchase a cance 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 $103,000 20x9 900 20x8 128,000 20x8 1,200 275 240 20x7 1,000 108,000 114,000 $38,500 49,000 44,000 45,500 52,000 66,500 310 20x6 20X6 20x5 20x4 141,500 20x5 1,100 1,400 ,700 400 140,000 20x4 1 Marketing Data: Number of Total Canoe Canoes Marketing Year Sold Costs Number of Total Paddle Paddles Marketing Year Sold Costs 20x9 250 $45,000 20x9 900 $7,500 20x8 275 43,000 20x8 1,200 9,000 20x7 240 8,000 20X6 310 8,500 44,000 51,000 62,000 60,000 20x7 1,000 20X6 20x5 1,400 20x41,700 20x5 350 10,000 20x4 400 11,500 Required: Check My Work

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