ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet Expected sales (in cases) 53,000 10,600 Selling price per case $99 $80 Direct labor hours 33,700 6,350 Machine hours 10,200 2,750 Receiving orders 48 23 Packing orders 95 50 Material cost per case $51 $42 Direct labor cost per case $10 $9 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Fixed Variable Direct labor benefits $ $204,255 Machine costs 207,500* 276,345 Receiving department 204,000 Packing department 118,500 Total costs $530,000 $480,600 * All depreciation

ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet Expected sales in cases) 53,000 10,600 Selling price per case $99 $80 Direct labor hours 33,700 6,350 Machine hours 10,200 2,750 Receiving orders 48 23 Packing orders 95 50 Material cost per case $51 $42 Direct labor cost per case $10 $9 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Fixed Variable Direct labor benefits $ $204,255 Machine costs 207,500 276,345 Receiving department 204,000 Packing department 118,500 Total costs $530,000 $480,600 All depreciation Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold for the company to break even. In your computations, round variable unit cost to the nearest cent and round the number of break-even packages to the nearest whole number. Break-even cases of Rose Break-even cases of Violet 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break even. In your computations, round all computed amounts to the nearest cent and round the number of break-even packages to the nearest whole number. Break-even cases of Rose Break-even cases of Violet