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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
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: The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhe costs follow. They are classified as fixed or variable with respect to direct labor hours. 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that must be sold fo he company to break even. In your computations, round variable unit cost to the nearest cent and round the number oreak-even packages to the nearest whole number. Break-even cases of Rose X cases Break-even cases of Violet cases 2. Using an activity-based approach, compute the number of cases of each product that must be sold for the company to break e in your computations, round all computed amounts to the nearest cent and round the number of break-even packag o the nearest whole number. Break-even cases of Rose cases Break-even cases of Violet cases
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