Required:

1. Determine the fixed and variable portion of the utility cost, using the high-low method. Round the per unit cost to the nearest cent.

	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.

Contribution margin per case $

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

Utilities cost (from part 1)	$
Facility lease	$
Equipment depreciation	$
Supplies	$
Total fixed costs	$

Determine the break even number of cases per month_____cases

Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight-ounce boties of hand and body lotion called Eternal Beauty. The lation is sold wholesale in 12 bot cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead coses are as billows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Cream base Variable 100 02 $0.02 $ 2.00 Natural oils Variable 20 oz. 0:30 Bottle (8-cz) Variable 12 bottles 6.00 $17.00 9.00 0.50 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Moving Variable 20 min. $18.00 $6.00 Filing 1.20 25 min. 5720 Variable 14.40 FACTORY OVERHEAD Cost Behavior Total Cost Mixed 5600 Utilities Facility lease Fixed 14.000 Fixed 4300 Equipment depreciation Supplies Fixed 660 $19.580 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 $800 800 660 February March 1200 740 April 1.100 720 May 950 690 June 1,025 705