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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 costs 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 costs and another that is more heavily weighted to variable costs. Estimated revenue and cost data for each alternative are as follows: Cost Structure Alternative #1Alternative # . - Selling price per unit Variable cost per unit Short-term fixed costs/year $ 50 35 85,000 S 50 30 90,000 Required: 1. What sales volume, in units, is needed for the total costs in each cost-structure alternative to be the same? les volume (in units) 2. Suppose your profit goal for the coming year is 10% of sales (Le. operating profit sales-10%). What sales level in units is needed under each alternative to achieve this goal? Alternative 1 Alternative 2 Required sales volume 3. 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? Alternative 1 Alternative 2 Required sales volume in dollars

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