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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 Expected sales in cases) 54,500 10,900 Selling price per case $102 $79 Direct labor hours 32,900 6,400 Machine hours 10,950 3,050 Receiving orders 50 26 Packing orders 97 46 Material cost per case $52 $44 Direct labor cost per case $10 $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 $ $165,060 Machine costs 190,000 306,540 Receiving department 220,000 Packing department 135,500 Total costs $545,500 $471,600 * 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 - 13,923 X cases Break-even cases of Violet 4,385 X 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 11,650 X cases Break-even cases of Violet cases

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