Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 07 Feb 2018 My Price 8.00

portion of the utility

part a—Break-even analysis

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 re- garding  this cost:

 

 

 

 

2016

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

instructions

 

 

 

1.     Determine the fixed and variable portion 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).

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

Answers

Maurice Tutor
(5)
Status NEW Posted 07 Feb 2018 08:02 PM My Price 8.00

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