Making the Connection 11. (2,3,7) Cake Integrative Exercise Cost Behavior and cost-Volume-Profit Analysis for Many Gacier Hotel 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 snell 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 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: Number of Total Paddle Paddles Manufacturing Year Manufactured Costs $38.500 Manufacturing Data: Number of Total Canoe Canoes Manufacturing Year Manufactured Costs 20x9 250 $103,000 20XB 275 128,000 20x7 240 108,000 20X6 114,000 141,500 20x4 400 140,000 20x9 20x8 20x7 20X6 20X5 20X4 900 1,200 1,000 1,100 1,400 1,700 310 49,000 44,000 45,500 52,000 66,500 20x5 Marketing Data: Number of Total Canoe Canoes Marketing Year Sold Costs Number of Total Paddle Paddles Marketing Year Sold Costs 20x9 250 $7,500 9,000 8.000 20XB 20x7 20x6 20x5 20x4 275 240 310 350 400 $45,000 43,000 44,000 51,000 67,000 60,000 20x9 900 20x8 1,200 20x7 1,000 20X61,100 20x5 1,400 20x4 1700 R.SOD 10,000 11,500 Check My Wick Assignment Score: 0.096 All work saved. Email Instructor Save and Exit Submit Assignment for Grading Making the Connection 11. (2,3,7) Cake 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 carnice product line. Variable cost per unit $ 172.50 X Total fixed cost $ 60,000 b. Use the high-low method to estimate the per-unt variable costs and total fixed costs for the paddle product line. Variable cost per unit Total fixed cost $ 60,000 2. Cast Volume-Profit Analysis, Single Product Setting Use CVP analysis to calculate the break-even point in units for a. The canoe product line only (.e.,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 cances because some inexperienced canoe guests accidentally break one or more paddles, while other guests purchase additional paddles es 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 cance and paddle customers. Use CVP analysis to calculate the break-even point in units for both the canoe and paddle product lines combined (ie, the multiple-product setting) Canne BF units CADORS Paddle BE units paddles 4. Cost Classification a. Classify the manufacturing costs, marketing costs, and sustomer 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 of 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 Check My Work Assignment Score: 0.096 All work saved. Email Instructor Save and Exit Submit Assignment for Grading Making the Connection 11. (2,3,7) Call 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 canoe guests accidentally break one or more paddles, while other guests purchase additional paddles es 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 cance 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). Cance units canoes Paddle BE units paddles 4. Cast Classification a. Classify the manufacturing costs, marketing costs, and customer service hotline costs either as production costs or period osts. 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 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) associated with the canon 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 pa target Income of 596,0007 Assume the same sales mix and additional fixed costs as in Requirement 3. Canoe target income units Paddle target income units paddles 6. Margin of Safety Cakulate the hotel's margin of safety (both in unts and in sales dolans 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 MD5 units above total BE units MOS in sales dollars Chuck My Wok Incorrect Check My Work Assignment Score: 0.096 All work saved. Emal Instructor Sawe and Exit Submit Avignment for Grading