Alternative Production Procedures and Operating Leverage Assume Paper Mate is planning to introduce a new executive pen that can be manufactured using either a capitalintensive method or a labor-intensive method. The predicted manufacturing costs for each method are as follows: Paper Mate's market research department has recommended an introductory unit sales price of $30. The incremental selling costs are predicted to be $500,000 per year, plus $2 per unit sold. (a) Determine the annual break-even point in units if Paper Mate uses the: 1. Capital-intensive manufacturing method. x units 2. Labor-intensive manufacturing method. x units (b) Determine the annual unit volume at which Paper Mate is indifferent between the two manufacturing methods. x units