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Required information [ The following information applies to the questions displayed below. ] Celestial Products, Inc., has decided to introduce a new product, which can
Required information
The following information applies to the questions displayed below.
Celestial Products, Inc., has decided to introduce a new product, which can be manufactured by either a computer
assisted manufacturing system or a laborintensive production system. The manufacturing method will not affect the
quality of the product. The estimated manufacturing costs by the two methods are as follows:
These costs are directly traceable to the new product line. They would not be incurred if the new product were not
produced.
The company's marketing research department has recommended an introductory unit sales price of $ Selling
expenses are estimated to be $ annually plus $ for each unit sold. Ignore income taxes.
Determine the annual unit sales volume at which the firm would be indifferent between the two manufacturing methods. Do not
round intermediate calculations. Round your final answer to the nearest whole number.
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