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Question 4 of 7 ... / 10 Tii View Policies Current Attempt in Progress Blossom Company has decided to introduce a new product. The new
Question 4 of 7 ... / 10 Tii View Policies Current Attempt in Progress Blossom 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 $ 6.20 per unit $ 6.70 per unit Direct labor $ 7.44 per unit $ 9.44 per unit Variable overhead $ 3.72 per unit $ 5.22 per unit Fixed manufacturing costs $ 3,128,800 $ 2,154,880 Blossom' market research department has recommended an introductory unit sales price of $39.68. The incremental selling expenses are estimated to be $ 680,480 annually plus $ 2.48 for each unit sold, regardless of manufacturing method. Answer the following. (a) Your answer has been saved. See score details after the due date. Calculate the estimated break-even point in annual unit sales of the new product if Blossom Company uses the: 1. Capital-intensive manufacturing method. 2. Labor-intensive manufacturing method. Capital-Intensive Labor-Intensive Break-even point in units 192000 179000 Attempts: 1 of 1 used (b) Determine the annual unit sales volume at which Blossom Company would be indifferent between the two manufacturing methods. (Round answer to 0 decimal places, e.g. 2,520.) Annual unit sales volume units Save for Later Attempts: 0 of 1 used Submit
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