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Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet 51,500

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Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Rose Violet 51,500 10,300 Expected sales in cases) Selling price per case $102 $79 Direct labor hours 37.000 6,200 9,200 2,750 Machine hours Receiving orders Packing orders 53 25 95 55 Material cost per case $52 $41 Direct labor cost per case $11 56 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 $ - $211.680 Machine costs 193,500 263,520 218,500 Receiving department Packing department 117,000 Total costs $529,000 $475,200 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 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 Feedback

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