Wildhorse 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 per unit $5.50 per unit Direct labor $6 per unit $8.00 per unit Variable overhead per unit $4.50 per unit Fixed manufacturing costs $2,278,000 $1,410,000 $3 Wildhorse' market research department has recommended an introductory unit sales price of $31. The incremental selling expenses are estimated to be $482,000 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 Wildhorse Company uses the: 1. Capital-intensive manufacturing method. 2. Labor-intensive manufacturing method. Capital-Intensive Labor-Intensive Break-even point in units Determine the annual unit sales volume at which Wildhorse Company would be indifferent between the two manufacturing methods. Annual unit sales volume units eTextbook and Media