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Cullumber Company has decided to introduce a new product that can be manufactured by either a capital-intensive method or a labour-intensive method. The manufacturing method

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Cullumber Company has decided to introduce a new product that can be manufactured by either a capital-intensive method or a labour-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs under the two methods are as follows: Cullumber's market research department has recommended an introductory unit sales price of $16. The incremental selling expenses are estimated to be $642,560 annually, plus $1 for each unit sold, regardless of the manufacturing method. Calculate the estimated break-even point in annual unit sales of the new product if Cullumber Company uses (1) the capitalintensive manufacturing method, or (2) the labour-intensive manufacturing method. Cullumber's market research department has recommended an introductory unit sales price of $16. The incremental selling expenses are estimated to be $642,560 annually. plus $1 for each unit sold, regardless of the manufacturing method. Calculate the estimated break-even point in annual unit sales of the new product if Cullumber Company uses (1) the capitalintensive manufacturing method, or (2) the bour-intensive manufacturing method. Question Part Score Determine the annual unit sales volume at which there would be no difference between methods

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