Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Product Information O Companies produces a slime in an eight-ounce packages. The slime is sold wholesale in 12-unit cases for $120 per case. There is

image text in transcribed

image text in transcribed Product Information O Companies 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 LABOR The management of O Companies 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 mon ths of operation regarding this cost: 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 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). 3. Determine the fixed costs per month, including the electricity fixed cost from part (1). 4. Determine the break-even number of cases per month. Cases

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions