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Calculate the minimum number of units of the new product required for the company to break even if the company uses the (a) labor-intensive production

  1. Calculate the minimum number of units of the new product required for the company to break even if the company uses the (a) labor-intensive production system; (b) computer-assisted manufacturing system. (Round each answer to the nearest whole number.)
  2. To achieve an after-tax income of 550,000, how many units of the new product will the company have to sell? (Round each answer to the nearest whole number.)

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Toledo Tool Company plans to introduce a new.r product. The company also considers adopting a new computerassisted manufactlning system. The new product can be manufactured by either the new.r computer assisted system or its traditional laborintensive production system. The company can achieve the same quality of the product regardless of Twhich the production system employed. The estimated product costs by the two production systems are as follows: Traditional LaborIntensive New ComputerAssisted Production Systems Manulcuning Systems Direct Material {per unit) 53.4 The marketing department recommst that the unit selling price of the new.r product he at $65, and the company expects the selling expenses for the new.r product to be $330,000 annually plus $4 for each unit sold The company is currently subject to a 40% income tax rate

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