The cost structure of two firms competing in the same industry is represented by the following cost formulas Company X - $1,610,000 $38/unit Company Z = $908,000 $74/unit. The selling price is $126 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. Indiference point volume units 2. If sales volume were expected to increase by 25% over the next two years, which cost structure would you prefer? O Company X Company z