7.4 I need assistance with step by step instructions on calculating the capital and labor operating leverage. Thanks

Assume Paper Mate is planning to introduce a new executive pen that can be manufactured using either a capitalintensive method or a laborintensive method. The predicted manufacturing costs for each method are as follows: Capital Intensive Labor Intensive Direct materials per unit $5.00 $6.00 Direct labor per unit $5.00 $13.00 Variable manufacturing overhead per unit $5.00 $2.00 Fixed manufacturing overhead per year $2,160,000.00 $540,000.00 Paper Mate's market research department has recommended an introductory unit sales price of $31 . The incremental selling costs are predicted to be $500,000 per year, plus $2 per unit sold