Question 13 Sheffield 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 Labor-Intensive Direct materials $7 per unit $7.50 per unit Direct labor $8 per unit $10 per unit Variable overhead $4 per unit $5.50 per unit Fixed manufacturing costs $1,666,000 $696,000 Sheffield' market research department has recommended an introductory unit sales price of $32. The incremental selling expenses are estimated to be $424,000 annually plus $2 for 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 Sheffield Company uses the: (Round answers to 0 decimal places, e.g. 5,275.) (1) Capital-intensive manufacturing method. Labor-intensive manufacturing method. (2) Labor-Intensive Capital-Intensive Break-even point in units (b) Determine the annual unit sales volume at which Sheffield Company would be indifferent between the two manufacturing methods. Annual unit sales volume units