Product Information MaBak Inc. produces a slime in an eight-ounce packages. The slime is sold wholesale in 12-unit cases for $120 per case. There is a selling commission of $9.95 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Units Cost Direct Materials Behavior per Case per Unit Cost per Case Glue base Variable 40 ozs. $0.20 $ 8.00 Shaving cream Variable 50 ozs. 0.50 25.00 Jar (8-oz.) Variable 12 units 0.17 2.00 $35.00 DIRECT LABOR Department Cost Time Labor Rate Direct Labor Behavior per Case per Hour Cost per Case Mixing Variable 30 min. $24.00 $12.00 Filling Variable 15.00 .25 13.25 FACTORY OVERHEAD Cost Behavior Total Cost Electricity Mixed $3,960 Factory Rent Fixed 32, 170 Equipment depreciation Fixed 12, 140 Supplies Fixed 2,000 $50,308 The management of MaBak Inc. wishes to determine the number of cases required to break even per month. The electricity 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: 2020 Case Production Utility Total Cost January 2,500 $2, 100 C February 2,250 1,885 March 2,380 2,002 April 2,330 1,875 May 2,470 1,900 June 2,200 1,860er 25 - Comprehensive Problem Fixed Costs, Variable Cost and Break Even- Show your work 1. Determine the fixed and variable portion of the electricity cost using the high-low method. At High Point At Low Point Variable cost per unit Total fixed cost Total cost 2. Determine the contribution margin per case. Enter your answer to the nearest cent (Don't forget the commission and the electricity cost in your variable cost calculation). Sales Price per Case $ Direct Material Cost per Case Direct Labor Cost per Case Variable Electricity Cost late Commission Cost per Case Total Variable Cost Contribution Margin per Case 3. Determine the fixed costs per month, including the electricity fixed cost from part (1). Electricity cost (from part 1) Factory Rent Equipment Depreciation Supplies Total Fixed Costs bywry 4. Determine the break-even number of cases per month. Cases