Al-Manara Corporation is thinking of producing and selling a new commodity, and there are two methods for its manufacture and production of the commodity, the automatic and the manual method. The manufacturing method will not affect the quality or sales of the product. The estimated manufacturing costs for the two methods are as follows: automatic method manual method Variable cost per unit.. $28 $38 Fixed cost per year $2,000,000 $1,000,000 The company's market research department has recommended an introductory selling price of $60 per unit for the new commodity. The annual fixed selling and administrative expenses of the new product are $500,000. The variable selling and administrative expenses are $2 per unit regardless of how the new commodity is manufactured. Instructions a. Calculate the break-even point in units if Al-Manara Corporation uses the: 1- automatic method 2. manual method. b. Determine the unit sales volume at which the net operating income is the same for the two manufacturing methods. c. Assuming sales of 200,000 units, what is the degree of operating leverage if the company uses the: 1. automatic method. 2. manual method. d. What is your recommendation to management concerning which manufacturing method should be used?