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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;
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.
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.
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