Team Spirit imprints calendars with college and university names. The company has fixed expenses of $1,035,0 each month plus variable expenses of $3.60 per carton of calendarsOf the variable expense, 70% is cost of goods sold, while the remaining 30% relates to variable operating expenses. Team Spirit sells each carton of calendars for $ 10.50.Use the equation approach to compute the number of cartons of calendars that Team Spirit must sell each month to break even

a. High-low method: Number of seminars Costs incurred April (high activity level) 18 $23,762 January (low activity level) 10 17,000 Change observed $6,762 Variable cost = Change in cost = $6,762 = $845.25 per seminar Change in activity Fixed cost element = Total cost - Variable cost element = $23,762 - (18 * $845.25) = $8,547.50 Cost formula for seminar costs: $8,547.50 per month plus $845.25 per seminar held