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LEDUUN Rose Violet Expected sales in cases) 56,500 11,300 Selling price per case $103 $81 Direct labor hours 35,750 5,500 Machine hours 10,350 3,400 Receiving

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LEDUUN Rose Violet Expected sales in cases) 56,500 11,300 Selling price per case $103 $81 Direct labor hours 35,750 5,500 Machine hours 10,350 3,400 Receiving orders 49 22 Packing orders 102 50 Material cost per case $50 $45 Direct labor cost per case $8 $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 $ $185,625 Machine costs 184,000* 268,125 Receiving department 229,500 Packing department 138,000 Total costs $551,500 $453,750 * 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

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