1. Natural Fragrance, Inc. began operations on January 1, 2022. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $80 per case. There is a selling commission of $16 per case. The January direct materials, direct labor, and factory overhead cost are as follows. Direct Materials Cost Behavior Units per Case Cream base Natural oil Variable 72 ozs. Variable 24 ozs. Bottle (8-oz.) Variable 12 bottles Cost Direct Materials Per Unit Cost per Case $0.015 $1.08 $0.250 $6.00 $0.400 $4.80 $11.88 Direct Labor Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 16.8 min. Filling Variable 4.2 min $15.00 $12.00 $4.20 $0.84 21.0.min $5.04 Utilities Facility lease. Equipment depreciation Supplies Factory Overhead Cost Behavior Total Cost Mixed $ 230. Fixed $12,043. Fixed $ 3,600. Fixed $ 600. $16.473 A. Break-Even Analysis The management of Natural Fragrance, Inc. wishes 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: 2022 Case Production Utility Total Cost January February 300 $230 600 $263 March 1,000 $300 April 900. $292 May 750 $280 June 825 $285