Carla Vista Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows. Capital-Intensive Labor-Intensive Direct materials $6.00 per unit $6.50 per unit Direct labor $7.00 per unit $9.00 per unit Variable overhead $3.00 per unit $5.00 per unit Fixed manufacturing costs $3,066,000 $2,071,500 Carla Vista' market research department has recommended an introductory unit sales price of $37.00. The selling expenses are estimated to be $582,000 annually plus $2.00 for each unit sold, regardless of manufacturing method. (a) Your answer is correct. Calculate the estimated break-even point in annual unit sales of the new product if Carla Vista Company uses the: 1. Capital-intensive manufacturing method. 2. Labor-intensive manufacturing method. Capital-Intensive Labor-Intensive Break-even point in units 192000 183000 Determine the annual unit sales volume at which Carla Vista Company would be indifferent between the two manufacturing methods. Annual unit sales volume units