Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows:DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per CaseCream base Variable 100 ozs. $0.02 $ 2.00Natural oils Variable 30 ozs. 0.30 9.00Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00DIRECT LABORDepartment Cost Behavior Time per Case Labor Rate per Hour Cost per CaseMixing Variable 20 min $18.00 $6.00Filling Variable 5 14.40 1.20 25 min. $7.20FACTORY OVERHEAD Cost Behavior Total CostUtilities Mixed $600Facility lease Fixed 14,000Equipment depreciation Fixed 4,300Supplies Fixed 660 $19,560The management of Genuine Spice Inc. wishes to determine thenumber of cases required to break even per month. The utilitiescost, which is part of factory overhead, is a mixed cost. Thefollowing information was gathered from the first six months ofoperation regarding this cost:2016 CaseProduction Utility Total CostJanuary 500 $600February 800 660March 1,200 740April 1,100 720May 950 690June 1,025 705Required:1. Determine the fixed andvariable portion of the utility cost using the high-lowmethod.2. Determine the contributionmargin per case.3. Determine the fixed costs permonth, including the utility fixed cost from part (1).4. Determine the break-even numberof cases per month.