(Solved): Assume Sharpie, a brand of Newell Brands, is planning to introduce a new executive pen that can be ...

Assume Sharpie, a brand of Newell Brands, is planning to introduce a new executive pen that can be manufactured using either a capital-intensive method or a labor-intensive method. The predicted manufacturing costs for each method are as follows: Sharpie's market research department has recommended an introductory unit sales price of \( \$ 120 \). The incremental selling costs are predicted to be \( \$ 250,000 \) per year, plus \( \$ 6 \) per unit sold. (a) Determine the annual break-even point in units if Sharpie uses the 1) Capital-intensive manufacturing method, and 2) Labor-intensive manufacturing method. (b) Determine the annual unit volume at which Sharpie is indifferent between the two manufacturing methods. Show your calculations and round your answers to the nearest whole number. Note: This problem is for extra credits. If you attempt it, you will get up to additional 30 points depending on the correctness.