The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X = $1,513,000 + $36/unit; Company Z = $884,000 + $70/unit. The selling price is $123 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? O Company X Company Z