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

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)