Carla VistaCompany 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-IntensiveLabor-IntensiveDirect materials

$4.80per unit$5.30per unitDirect labor

$5.76per unit$7.76per unitVariable overhead

$2.88per unit$4.38per unitFixed manufacturing costs

$2,422,080$1,458,528

Carla Vista' market research department has recommended an introductory unit sales price of $30.72. The incremental selling expenses are estimated to be $484,032annually plus $1.92for each unit sold, regardless of manufacturing method.

Answer the following.

(a)

Calculate the estimated break-even point in annual unit sales of the new product ifCarla VistaCompany uses the:

1.Capital-intensive manufacturing method.2.Labor-intensive manufacturing method.

Capital-IntensiveLabor-IntensiveBreak-even point in units

enter the break even point for capital intensive in units

enter the break even point for labor intensive in units