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ences Mailings Review View Paragraph Help AaBbCcDc AaBbCcDc Normal No Spac. AaBbC( Heading 1 Styles AaBbCcC Heading 2 Production Procedures and Operating Leverage Assume Paper Mate is planning to introduce a new executive pen that can be manufactured using either a capital-intensive or a labor-intensive n-.ett-.od- The predicted manufacturing costs for each method are as follows: Capital Intensive Direct matzials pz it Diret pz unit Vziable mmucttring ot-ghead per unit Fixed muuctuizg overhead ss.oo ss.oo SS .00 160,000.00 $6.00 S13.oo $2.00 $40,000.00 Paper Mate's market research department has recommended an introductory unit sales price of $31. The incremental selling costs are predicted to be $500,000 per year, plus $2 per unit sold. (a) Determine the annual break-even point in units if Paper Mate uses the: I. Capital-intensive rnanufacturing AnsweJ 2- Labor-intensive manufacturing method- (b) Determine the annual unit volume at which Paper Mate is indfferent between the t'.vo manufacturing rnemods.