Flounder company has decided to introduce a new product, the new product can be manufactored by either captial intensive method or a labor intensive method, the manufacoring method will not affect the quaiity of the product. the esimated manu costs by the methods are as follows.

method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows CALCULATOR PRINTER VERSION Direct materials Direct labor Variable overhead Fixed manufacturing costs Capital Intensive $6 per unit $6 per unit $3 per unit $968,000 Labor-Intensive $6.50 per unit $8 per unit $4.50 per unit $105,000 Flounder market research department has recommended an introductory unit sales price of $32. The incremental selling expenses are estimated to be $1,732,000 annu 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 if Flounder Company usesythe: (Round answers to 0 decimal places, 6.9. 5,275.) (1) (2) Capital-intensive manufacturing method. Labor-intensive manufacturing method. Capital-Intensive Labor-Intensive Break-even point in units (b) Determine the annual unit sales volume at which Flounder Company would be indifferent between the two manufacturing methods. units Annual unit sales volume