Essence of persia inc began operations on january 1 2010

Reference no: EM13594062

The following is the comprehensive problem in the textbook which encompasses all of the elements learned in previous chapters. Refer to the objectives for each chapter covered as a review of concepts.

Essence of Persia, Inc., began operations on January 1, 2010. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $80 per case. There is a selling commission of $16 per case. The January direct materials, direct labor, and factory overhead costs are as follows:

The management of Essence of Persia, 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:

Instructions:

1. Determine the fixed and variable portion of the utility cost using the high-low method. Round the per unit cost to the nearest cent.
At High Point At Low Point
Variable Cost (per unit)
Total Fixed Cost
Total Cost

Reference no: EM13594062

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