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 follows:

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: 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 Instructions 1. Determine the fixed and variable portion of the utility cost using the high-low method. 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 num ber of cases per monthREQUIREMENT #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 caseREQUIREMENT #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 SuppliesRequirement #4: Determine the break-even num ber of cases per month. Break-even Analysis Break-even Unit Sales (units) E Fixed Costs Contribution MarginDIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 oz $0.02 $2.00 Natural oils Variable 30 oz $0.30 $9.00 Bottle (8 oz) Variable 12 bottles $0.50 $6.00 Total $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 minutes $18.00 $6.00 Filling Variable 5 minutes $14.40 $1.20 Total 25 minutes $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed $14,000 Equipment depreciation Fixed $4300 Supplies Fixed $660 Total $19,560