Genuine Spice Inc. began operations on January $1$ of the current year. The company produces eight$-$ ounce bottles of hand and body lotion called Eternal Beauty. The lotion 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

Cost Behavior Units per Case Cost per Unit Cost per Case

Cream base Variable $100$ oz$.$ $$0\mathrm{.}02$ $ $2\mathrm{.}00$

Natural oils Variable $30$ oz$.0\mathrm{.}309\mathrm{.}00$

Bottle $(8-$oz$.)$ Variable $12$ bottles $0\mathrm{.}506\mathrm{.}00$

$$17\mathrm{.}00$

DIRECT LABOR

Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case

Mixing Variable $20$ min. $$18\mathrm{.}00$ $$6\mathrm{.}00$

Filling Variable $514\mathrm{.}401\mathrm{.}20$

$25$ min. $$7\mathrm{.}20$

FACTORY OVERHEAD

Cost Behavior Total Cost

Utilities Mixed $$600$

Facility lease Fixed $14,000$

Equipment depreciation Fixed $4,300$

Supplies Fixed $660$

$$19,560$

Part A$$Break$-$Even Analysis

The management of Genuine Spice 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:

Case Production

Utility Total Cost

January $500$ $$600$

February $800660$

March $1,200740$

April $1,100720$

May $950690$

June $1,025705$

Required$-$Part A:

$1.$ Determine the fixed and variable portion of the utility cost using the high$-$low method. Do not round your intermediate calculations and round variable cost per unit answers to two decimal places.

$2.$ Determine the contribution margin per case. Do not round your intermediate calculations and round your final answer to two decimal places.

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

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