BC 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:

ood 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) 50,000 10,000 Selling price per case $100 $80 Direct labor hours 36,000 6,000 Machine hours 10,000 3,000 Receiving orders 50 25 Packing orders 100 50 Material cost per case $50 $43 Direct labor cost per case $10 $7 he company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as Ixed or variable with respect to direct labor hours. 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 $ $200,000 Machine costs 200,000* 262,000 Receiving department 225,000 Packing department 125,000 Total costs $550,000 $462,000 All depreciation