Odjig was considering selling a new type of special custom canoe that had four mounted back seats for the rides. These seat cost $40 wholesale each plus $12 shipping each. The new seats would require a new air compressor for the shop to be rented at $15 per month. 6a. What is the new variable cost on the new potential product, assuming an 18ft model? b. What would the contribution margin be assuming only 18ft models are sold for a price of $4150. c. Odjig was considering switching the business to only producing these and was curious how many units would need to be sold to cover all historical fixed costs and any new ones from the project. d. What would the margin of safety be when comparing the number of canoes sold historically vs your answer to 6c. Make a recommendation about this decision. Odjig was approached by the Thames valley conversation authority looking to 6000 square feet of birch bark sewn and sealed together for restoration projects to some of their historical displays. Odjig was offered $10 per square foot to produce the material. The project would require $20 of direct labour per 60 feet of product. In addition, it would consume 10% of the supervisors time 2 and would result in $120 of additional utilities. It was also estimated that the sewing would be 1/20th of all sewing done that year on the machines. The material itself would cost $18,000. This would impact Odjg's capacity and she would not be able to produce the same amount of canoes that year, she estimated she would forgo producing 2 average canoes. The project would require investing in a vertical wrack for sewing that would cost $12,000. 7. Assuming your work answer from question 5 around weighted average canoes is correct, create an incremental analysis related to the conservation authority project. Make a recommendation about this decision. 8. What is the target cost for the project if Odjig wants to make $25,000 from the project? 9. What price should Odjig respond to the conservation authority with if she desires a 20% margin