0. value: 0.59 points < Question 10 (of 10) > Save & Exit Submit The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X $2,155,000+ $48/ unit; Company Z = $1,028,000 +$94/unit. The selling price is $142 per unit for both companies. Required: 1. Calculate the indifference point between the two cost structures, that is, the amount of unit sales that produce the same operating income for Company X and Company Z Indifference point volume units 2. If sales volume were expected to increase by 25% over the next two years, which cost structure would you prefer? Company X Company Z esc " eBook & Resources eBook: Use operating leverage to evaluate cost structures. " 2 # 20 " 54 888 14 4 " 85 % ^ & * 6 7 8 9 4 9 110 G BB delete 0. value: 0.59 points < Question 10 (of 10) > Save & Exit Submit The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X $2,155,000+ $48/ unit; Company Z = $1,028,000 +$94/unit. The selling price is $142 per unit for both companies. Required: 1. Calculate the indifference point between the two cost structures, that is, the amount of unit sales that produce the same operating income for Company X and Company Z Indifference point volume units 2. If sales volume were expected to increase by 25% over the next two years, which cost structure would you prefer? Company X Company Z esc " eBook & Resources eBook: Use operating leverage to evaluate cost structures. " 2 # 20 " 54 888 14 4 " 85 % ^ & * 6 7 8 9 4 9 110 G BB delete