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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

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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 51,000 10,200 Expected sales in cases) Selling price per case $100 $83 Direct labor hours 36,750 6,400 Machine hours 9,250 2,700 Receiving orders 52 24 Packing orders 98 51 Material cost per case $49 $44 Direct labor cost per case $12 $8 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 $ $215,750 215,750 Machine costs Receiving department Packing department 211,000 212,500 149,000 $572.500 Total costs 5431,500 All depreciation 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 11 X 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

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