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 $38.500 20x8 275 128,000 20x8 1,200 49,000 20x7 240 20x7 1,000 44,000 20X6 310 350 108,000 114,000 141,500 140,000 20x5 20X6 20x5 20x4 1,100 1,400 1,700 45,500 52,000 66,500 20X4 400 Marketing Data: Number of Total Canoe Canoes Sold Marketing Costs Number of Total Paddle Paddles Marketing Year Sold Costs Year 20x9 $7,500 20x8 9,000 8,000 20x7 20x6 20x5 250 275 240 310 350 400 $45,000 43,000 44,000 51,000 62,000 60,000 20x9 900 20x8 1,200 20x7 1,000 20X6 1,100 20x5 20x41,700 8,500 10,000 11,500 20x4 Required: 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 Totalfixed 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 (ie.,single-product setting) BE units canoes b. The paddle product line only (i.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 canoes 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 1 x 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 product costs. All marketing costs and customer hotline costs are period 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 dassified as selling expenses . Customer hotline costs relate to the customer service section of the value chain and would be further classified as general and administrative expense . 5. Sensitivity Cost-Volume-Profit Analysis and Production Versus Period Costs, Multiple- Product Setting Ir 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 paddles would need to be sold in order to earn a target income of $96,000? Assume the same sales mix and additional fixed costs as in Requirement 3. 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 cances and paddles would need to be sold in order to earn a target income of $96,000? Assume the same sales mix and additional fixed costs as in Requirement 3. Canoe target income units canoes Paddle target income units paddles 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. total MOS units above total BE units C M OS in sales dollars