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You are currently trying to decide between two cost structures for your business: one that has a greater proportion of short-term fixed cost and another

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You are currently trying to decide between two cost structures for your business: one that has a greater proportion of short-term fixed cost and another that is more heavily weighted to variable costs. Estimated revenue and cost data for each alternative are as follows: What sales volume, in unit, is needed for the costs in each cost-structure alternative to be the same? Suppose your profit goal for the coming year is 10% of sales (i.e., operating profit divided by sales = 10%). What sales level in units is needed under each alternative to achieve this goal? Suppose again that your profit goal for the coming year is 10% of sales. What sales volume in dollars is needed under each alternative to achieve this goal

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