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 Utility Total Month Case Production Cost January 500 $ 600.00 February 800 $ 660.00 March 1,200 $ 740.00 April 1,100 $ 720.00 May 950 $ 690.00 June 1,025 $ 705.00 1. Determine the fixed and variable portion of the utility cost using the high-low 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 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 DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 oz. 50.02 $ 2.00 Natural oils Variable 30 oz. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Cost Time Labor Rate Direct Labor Department Behavior per Case per Hour Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $ 600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 REQUIREMENT #1: Determine the fixed and variable portion of the utility cost using the high-low Variable Cost per Unit Total Cost High Point Low Point High-Low Method Difference in Total Cost Differen ce in Producti On TRRS Variabl e Cost per Unit Prod Fixed uctio Costs X + 8 + REQUIREMENT #2: Determine the contrinution margin per case. Contribution Margin Selling Price Less variable costs per case: Direct materials Direct labor Utilities (see High-Low Method) Selling expenses Total variable costs per case Contribution margin per case REQUIREMENT #3: Determine the fixed costs per month, including the utility fixed cost from question (1). Total Fixed Costs Utilities [see High-Low Method] Facility lease Equipment depreciation Supplies Requirement #4: Determine the break-even number of cases per month. Break-even Sales (units) Break-even Analysis Fixed Costs Unit Contributio n Margin