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Business, 24.10.2019 18:43 mrguyman

Bramble 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 per unit $6.50 per unit direct labor $6 per unit $8 per unit variable overhead $3 per unit $4.50 per unit fixed manufacturing costs $2,308,000 $1,324,000 bramble’ market research department has recommended an introductory unit sales price of $32. the incremental selling expenses are estimated to be $392,000 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 bramble company uses the: (round answers to 0 decimal places, e. g. 5,275.) (1) capital-intensive manufacturing method. (2) labor-intensive manufacturing method. capital-intensive labor-intensive break-even point in units (b) determine the annual unit sales volume at which bramble company would be indifferent between the two manufacturing methods. annual unit sales volume units

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