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. 2. If sales volume were expected to increase by 25% over the next two years, which cost structure would you prefer? 1. Indifference point volume 2. Preferred cost structure units