Reference no: EM131883232

Question - Martinez Company has decided to introduced 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. Yhe estimated manufacturing costs by the two methods are as follows. capital intensive direct materials 5:oo/unit, direct labor $6.00/unit, variable overhead $3.00/unit, fixed manufacturing costs $2,508,00. Labor intensive direct materials $5.50/unit, direct labor $8.00/unit, variable cost $4.50/unit, fixed manufacturing costs $1,538,000. Please calculate annual units sales volume at which Martinez Company would be indifferent between the two manufacturing methods.