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) 53,500 10,700
Selling price per case $101 $82
Direct labor hours 32,900 6,450
Machine hours 10,250 2,500
Receiving orders 52 23
Packing orders 96 55
Material cost per case $48 $42
Direct labor cost per case $11 $6
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 $ — $173,140
Machine costs 187,000* 299,060
Receiving department 244,500 —
Packing department 106,000 —
Total costs $537,500 $472,200
* 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 fill in the blank 1
cases
Break-even cases of Violet fill in the blank 2
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 fill in the blank 3
cases
Break-even cases of Violet fill in the blank 4
cases