Rose Violet Expected sales (in cases) 55,000 11,000 Selling price per case $102 $83 Direct labor hours 36,450 6,200 Machine hours 10,850 3,150 Receiving orders 53 26 Packing orders 102 55 Material cost per case $48 $43 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 $ $217,515 Machine costs 189,500* 208,985 Receiving department 234,500 Packing department 103,000 Total costs $527,000 $426,500 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 11,439.9 X cases Break-even cases of Violet cases Receiving orders 53 26 Packing orders 102 55 Material cost per case $48 $43 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 $ $217,515 Machine costs 189,500 208,985 Receiving department 234,500 Packing department 103,000 Total costs $527,000 $426,500 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 11,750 cases Break-even cases of Violet 2,350 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 9,352 X cases Break-even cases of Violet 6,029 X cases