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.

$($a$)$

X Your answer is incorrect.

Calculate the estimated break$-$even point in annual unit sales of the new product if Cullumber Company uses $(1)$ the capital$-$

intensive manufacturing method, or $(2)$ the labour$-$intensive manufacturing method.

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$($b$)$

X Your answer is incorrect.

Determine the annual unit sales volume at which there would be no difference between methods.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.