Pharoah 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 abor-Intensive $6 $7 $3 $2,678,000 $6.00per unit $9.00 per unit $5.00 per unit $1,762,000 Direct materials Direct labor Variable overhead Fixed manufacturing costs per unit per unit per unit Pharoah' market research department has recommended an introductory unit sales price of $35. The incremental selling expenses are estimated to be $552,000 annually plus $2 for each unit sold, regardless of manufacturing method With the class divided into groups, answer the following. Calculate the estimated break-even point in annual unit sales of the new product if Pharoah Company uses the: 1. Capital-intensive manufacturing method 2. Labor-intensive manufacturing method Capital-Intensive Labor-Intensive Break-even point in units 178000 Determine the annual unit sales volume at which Pharoah Company would be indifferent between the two manufacturing methods. Annual unit sales volume 3000units