Pharoah 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: Direct materials Capital-Intensive Labour-Intensive $5.00 per unit $5.50 per unit Direct labour $6.00 per unit $8.00 per unit Variable overhead $3.00 per unit $4.50 per unit Fixed manufacturing costs $2,826,880 $1,736,000 Pharoah's market research department has recommended an introductory unit sales price of $32. The incremental selling expenses are estimated to be $562,240 annually, plus $2 for each unit sold, regardless of the manufacturing method. Calculate the estimated break-even point in annual unit sales of the new product if Pharoah Company uses (1) the capital- intensive manufacturing method, or (2) the labour-intensive manufacturing method. (1) (2)