Determine the fixed and variable portions of utility cost

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Question - The management of Genuine Spice Inc. wishes 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:

Month Case Production Utility Total Cost

January 500 $600

February 800 660

March 1,200 740

April 1,100 720

May 950 690

June 1,025 705

Required -

1. Determine the fixed and variable portions of the utility cost using the high-low method.

2. Determine the contribution margin per case.

3. Determine the fixed costs per month, including the utility fixed cost from part (1). Refer to the lists of Amount Descriptions for the exact wording of the answer choices for text entries.

4. Determine the break-even number of cases per month.

Reference no: EM133033789

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