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MAKING THE CONNECTION INTEGRATIVE EXERCISE (CHAPTERS 1-4) 201 201 201 Cost Behavior and Cost-Volume-Profit Analysis for Many Glacier H Req Chapters |Objectives Cornerstones 2-2 3-2 4-1 4-2 4-5 4-7 2. The purpose of this integrated exercise is to demonstrate the interrelationship between cost techniques and subsequent uses of cost information. In particular, this exercise illustrates how vaniable and fixed cost information estimated from a high-low analysis can be used in a single. multiple-product CVP analysis 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 Great Northerm Railway, In an effort to supplement its lodgi ing revenue, the hotel decided in 2003 t begin manufacturing and selling small wooden canoes decorated with symbols hand painted by Hs s living near the park. Due to the great success of the canoes, the hotel began manuf and selling paddles as well in 2006. Many hotel guests purchase a canoe and paddles for use in sel guided tours of Swiftcurrent Lake. Because production of the two products began in different yea the canoes and paddles are produced in separate production facilities and employ different labos Each canoe sells for $500, and each paddle sells for $50. A 2006 fire destroyed the hotel's accountne records. However, a new system put into place before the 2007 season provides the following agore gated data for the hotel's canoe and paddle manufacturing and marketing activities: Manufacturing Data: Number of Canoes Total Canoe Manufacturing Number of Paddles Total Paddle Manufacturing Year Manufactured Year Manufactured 2012 2011 2010 2009 2008 275 240 310 350 400 $106,000 2012 15,0002011 108,000 122,0002010 1200 130,000 2008 140,000 1,000 1,100 1,400 1,700 $38,500 49,000 42,000 45,500 56,000 66,500 2007 2007