Current Attempt in Progress

Crane Company has decided to introduce a new product that can be manufactured by either a capital$-$intensive method or a labourintensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs under the two methods are as follows:

$\backslash$table$[[,$Capital$-$Intensive,Labour$-$Intensive$],[$Direct materials,$$5\mathrm{.}50$ per unit,$$10\mathrm{.}75$ per unit$],[$Direct labour,$$4\mathrm{.}00$ per unit,$$9\mathrm{.}00$ per unit$],[$Variable overhead,$$3\mathrm{.}50$ per unit,$$7\mathrm{.}25$ per unit$],[$Fixed manufacturing costs,$$3,180,240,$$$1,953,000$