View PoliciesShow Attempt History$>2\mathrm{.}5/5$mCurrent Attempt in ProgressSheridan Company has decided to introduce a new product that can be manufactured by either a capital intensive method or a labour$-$intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs under the two methods are as follows:Capital$-$IntensiveLabour$-$IntensiveDirect materials$$5\mathrm{.}00$ per unit$$5\mathrm{.}50$ per unitDirect labour$$6\mathrm{.}00$ per unit$$8\mathrm{.}00$ per unitVariable overhead$$3\mathrm{.}00$ per unit$$4\mathrm{.}50$ per unitFixed manufacturing costs$$2,322,080$$$1,426,000$Sheridan's market research department has recommended an introductory unit sales price of $$32.$ The incremental selling expenses are estimated to be $$461,840$ annually, plus $$2$ for each unit sold, regardless of the manufacturing method.