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A 0 E 1 B D FARARAAN AMALANG 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 onartinn renndinn thie net: Month January February March April May June Utility Total Case Productid Cost 500 $ 600.00 800 $ 660.00 200 $ 740.00 100 $ 720.00 950 $ 690.00 1025 705.00) Instructions 1. Determine the fixed and variable portion of the utility cost using the high-low 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 number of coses per month REQUIREMENT #1: Determine the fixed and variable portion of the utility cost using the High-Low Method Variable Cost per Unit Difference in Total Cost - Difference in Productio n Variable Total Cost Cost per Units of Produc tion + Unit Fixed Costs High Point Low Point X + 1 REQUIREMENT #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 case 2 A B C D E F REQUIREMENT #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 Supplies Requirement #4: Determine the break-even number of cases per month. Break-even Analysis Break-even Sales (units) Fixed Costs 1. Unit Contributio n Margin

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