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Genuine 5 pice tnc, began operations on January 1 of the current year. The company produces 8 -ounce botties of hand and body lotion called
Genuine 5 pice tnc, began operations on January 1 of the current year. The company produces 8 -ounce botties of hand and body lotion called Eternal Beauty. The fotion 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 iabor, and factory overhead costs are as follows: DIRECT LABOR The management of Genuine Spice Inc. Wishes to determine the number of cases required to breakeven per month. The utilities cont, which is part of factory bverhead, is a mixed cost. The following information was gathered from the first six monthis of operation regarding this cost. Requiredt 1. Detemine the fincd and varabie portions of the utilty cost using the high-low method, Round the per unit cost to the nearest cent. 2. Determint the contribubon marcin per cose. Round your answer to the nearest cent: Contritution margin per case x 2. Determine the contribution margin per case. Round your answer to the nearest cent. Contribution margin per case $ x 3. Determine the fixed costs per month, including the utility fixed cost from part (1). 4. Determine the break-even number of cases per month. cases
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