Comprehensive Problem 5 Part A: Note: You must complete part Abefore completing parts B and C. Genuine Spice Inc. beganoperations on January 1, 2016. The company produces a hand and bodylotion in an eight-ounce bottle called Eternal Beauty. The lotionis sold wholesale in 12-bottle cases for $100 per case. There is aselling commission of $20 per case. The January direct materials,direct labor, and factory overhead costs are as follows: DIRECTMATERIALS Cost Behavior Units per Case Cost per Unit DirectMaterials Cost per Case Cream base Variable 100 ozs. $0.02 $2.00Natural oils Variable 30 ozs. 0.30 9.00 Bottle (8-oz.) Variable 12bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Timeper Case Labor Rate per Hour Direct Labor Cost per Case MixingVariable 20 min. $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min.$7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed$600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300Supplies Fixed 660 $19,560 Part A—Break-Even Analysis Themanagement of Genuine Spice Inc. wishes to determine the number ofcases required to break even per month. The utilities cost, whichis part of factory overhead, is a mixed cost. The followinginformation was gathered from the first six months of operationregarding this cost: 2016 Case Production Utility Total CostJanuary 500 $600 February 800 660 March 1,200 740 April 1,100 720May 950 690 June 1,025 705 Required: 1. Determine the fixed andvariable portion of the utility cost using the high-low method.Round the per unit cost to the nearest cent. At High Point At LowPoint Variable cost per unit $ $ Total fixed cost $ $ Total cost $$ 2. Determine the contribution margin per case. Enter your answerto the nearest cent. Contribution margin per case $ 3. Determinethe fixed costs per month, including the utility fixed cost frompart (1). Utilities cost (from part 1) $ Facility lease $ Equipmentdepreciation $ Supplies $ Total fixed costs $ 4. Determine thebreak-even number of cases per month. cases