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Celestial Products, Inc., has decided to introduce a new product, which can be manufactured by either a computer$-$assisted manufacturing system or a labor$-$intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows:

Computer$-$Assisted

Manufacturing System Labor$-$Intensive

Production System

Direct material $ $8\mathrm{.}20$ $ $9\mathrm{.}10$

Direct labor $($DLH denotes direct$-$labor hours$)0\mathrm{.}5$DLH @ $$21\mathrm{.}5010\mathrm{.}750\mathrm{.}8$DLH @ $$17\mathrm{.}0013\mathrm{.}60$

Variable overhead $0\mathrm{.}5$DLH @ $$12\mathrm{.}506\mathrm{.}250\mathrm{.}8$DLH @ $$12\mathrm{.}5010\mathrm{.}00$

Fixed overhead$*$ $ $4,010,000$ $ $2,330,000$

$*$These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced.

The company$$s marketing research department has recommended an introductory unit sales price of $$59\mathrm{.}00.$ Selling expenses are estimated to be $$820,000$ annually plus $$3\mathrm{.}70$ for each unit sold. $($Ignore income taxes.$)$

Required:

$1.$ Calculate the estimated break$-$even point in annual unit sales of the new product if the company uses the $($a$)$ computer$-$assisted manufacturing system; $($b$)$ labor$-$intensive production system. $($Do not round intermediate calculations. Round your final answers to the nearest whole number.$)$

$2.$ 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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