Please help me find the answer to (b) - Determine the annual unit volume at which Paper Mate is indifferent between the two manufacturing methods. Please show work. Thank you!

Alternative Production Procedures and Operating Leverage Assume Paper Mate 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: Capital Intensive Labor Intensive Direct materials per unit $ 5.00 $ 8.00 Direct labor per unit $ 5.00 $ 12.00 Variable manufacturing overhead per unit $ 4.00 $ 2.00 Fixed manufacturing overhead per year $ 2,440,000 $ 700,000 Paper Mate's market research department has recommended an introductory unit sales price of $40. The incremental selling costs are predicted to be $500,000 per year, per unit sold. plus $2. (a) Determine the annual break-even point in units if Paper Mate uses the: 1. Capital-intensive manufacturing method. 122,500 units 2. Labor-intensive manufacturing method. 75,000 units (b) Determine the annual unit volume at which Paper Mate is indifferent between the two manufacturing methods. 1.96 X units