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Question 4 of 7 - / 10 Sunland Company has decided to introduce a new product. The new product can be manufactured by either a
Question 4 of 7 - / 10 Sunland 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 $5.80 $6.30 Direct labor $6.96 $8.96 per unit Variable overhead $3.48 $4.98 Fixed manufacturing costs $2.926,880 $1.984,448 per unit per unit per unit per unit per unit Sunland market research department has recommended an introductory unit sales price of $37.12. The incremental selling expenses are estimated to be 5621.792 annually plus $2.32 for each unit sold, regardless of manufacturing method. Answer the following 4 OT / -/10 E Answer the following (a) Calculate the estimated break-even point in annual unit sales of the new product if Sunland Company uses the 1 Capital-intensive manufacturing method. Labor-intensive manufacturing method. 2 Capital Intensive Labor-Intensive Break-even point in units
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