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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

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: Rose Violet Expected sales (in cases) 59,000 11,800 Selling price per case $103 $78 Direct labor hours 37,450 5,850 Machine hours 9,300 2,550 Receiving orders 51 27 Packing orders 102 50 Material cost per case $52 $45 Direct labor cost per case $11 $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 $ $216,500 Machine costs 189,500* 303,100 Receiving department 240,000 Packing department 150,000 Total costs $579,500 $519,600 * 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 fill in the blank 1 15,508 Break-even cases of Violet fill in the blank 2 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 Break-even cases of Violet fill in the blank 4

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