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Determine the annual unit sales volume at which the firm would be indifferent between the two manufacturing methods. ( Do not round intermediate calculations. Round
Determine the annual unit sales volume at which the firm would be indifferent between the two manufacturing methods. (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
Ivanhoe 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 Direct materials $4.30 per unit Direct labor $ 5.16 per unit Variable overhead $2.58 per unit Fixed manufacturing costs $2.169.680 Labor-Intensive $4.80 per unit $7.16 per unit $4.08 per unit $ 1,322,832 Ivanhoe' market research department has recommended an introductory unit sales price of $ 27.52. The incremental selling expenses are estimated to be $ 414.448 annually plus $ 1.72 for each unit sold, regardless of manufacturing method. Calculate the estimated break-even point in annual unit sales of the new product if Ivanhoe Company uses the 1. Capital-intensive manufacturing method. Labor-intensive manufacturing method. 2 Capital-Intensive Labor-Intensive Break-even point in units
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