Problem 16.42 ABC and CVP Analysis: Multiple Products Objective 3,6 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) Selling price per case Direct labor hours Machine hours Receiving orders Packing orders Material cost per case Direct labor cost per case 50,000 S100 36,000 10,000 50 100 S50 SID 10,000 580 6,000 3,000 25 50 543 S7 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. Actiu Variable Fixed AA 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 $200,000 262,000 Direct labor benefits Machine costs Receiving department Packing department Total costs 200,000 225,000 125,000 $550.000 $462.000 *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. 2. Using an activity-based approach compute the number of cases of each product that must be sold for the company to break even. Activate Wind