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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: Rose Violet Expected sales (in cases) 49,500 9,900 Selling price per case $103 $81 Direct labor hours 34,500 6,050 Machine hours 9,850 2,700 Receiving orders 51 28 Packing orders 100 49 Material cost per case $49 $41 Direct labor cost per case $9 $7 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 $ $170,310 Machine costs 180,000* 235,190 Receiving department 203,500 Packing department 139,500 Total costs $523,000 $405,500 * 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 fill in the blank 1 cases Break-even cases of Violet fill in the blank 2 cases 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 fill in the blank 3 cases Break-even cases of Violet fill in the blank 4 cases

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