#$1$: Determine the fixed and variable portion of the utility cost using the high$-$low method. #$2$: Determine the contribution margin per case. #$3$: Determine the fixed costs per month, including the utility fixed cost from question $(1).$ #$4$: Determine the break$-$even number of cases per month.

Quivers Inc. began operations on January $1$ of the current year. The company produces eight$-$ounce bottles of jet

wax called Ophelia Shine. The wax is sold wholesale in $12-$bottle cases for $$100$ per case. There is a selling commission

of $$20$ per case $.$ The January direct materials, direct labor $,$ and factory overhead costs are as follows:

DIRECT MATERIALS

DIRECT LABOR

FACTORY OVERHEAD

Part A$.$ Break$-$even Analysis

The management of Quivers Inc. wants to determine the number of cases required to

break even per month. The utilities cost, which is part of factory overhead, is a mixed

cost$.$ The following information was gathered from the first six months of operation

regarding this cost:

Instructions

$1.$ Determine the fixed and variable portion of the utility cost using the high$-$low method.

$2.$ Determine the contrinution margin per case.

$3.$ Determine the fixed costs per month, including the utility fixed cost from question $(1).$

$4.$Determine the break$-$even num ber of cases per month