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5... u...- unu- unuuuu I Problem 7-44 Break-Even Analysis; Operating Leverage; New Manufacturing Environment {LO 7-1, 2-8, 7- 10) {The foiio wing infomarion applies to

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\"5\"..." u...- unu- unuuuu I Problem 7-44 Break-Even Analysis; Operating Leverage; New Manufacturing Environment {LO 7-1, 2-8, 7- 10) {The foiio wing infomarion applies to the questions displayed beiow} Celestial Products. Inc.. has decided to introduce a new product. which can be manufactured by either a computer- assisted manufacturing system or a labor-intensive production system. The manufacturing method will not affect the quality of the product The estimated manufacturing costs by the two methods are as follows: Computer-Assisted Labor-Intensive Manufacturing System Production System Direct material. $ 6.66 5 9.56 Direct labor [DLH denotes directlabor hours} 6.5lJLH @ $23.56 11. 3'5 6.80LH I3 $19.66 15.26 Variable overhead 6.5EILH @ $14.56 I". 25 ILBDLH @ $14.56 11.6.6I Fixed overheads $4,216,666 $2,536,666 'These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company's marketing research department has reoommended an introductory unit sales price of $67.00. Selling expenses are estimated to be $360,000 annually plus $4.10 for each unit sold- {Ignore income taxes.) Problem 744 Part 1 Required: 1. Calculate the estimated break-even point in annual unit sales of the new product if the company uses the {a} computer-assisted manufacturing system; (b) labor-intensive production system. {Do not round intermediate calculations. Round your nal answers to the nearest whole number.] Computer-assisted manufacturing system Laborintensive production system

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