The Sanchez Company has decided to introduce a new product. The new product can

The Sanchez Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: Capital-Intensive Direct Materials 5$ per unit Direct Labor 6$ per unit Variable Overhead $3 per unit Fixed Manufacturing Costs $2508000 Labor Intensive Direct Materials 5.5$ per unit Direct Labor 8$ per unit Variable Overhead $4.5 per unit Fixed Manufacturing Costs $1538000