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Business, 01.08.2020 16:01 puppylover72

The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X = $2,276,000 + $50/ unit; Company Z = $1,052,000 + $98/unit. The selling price is $145 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 exactly the same operating income for Company X and Company Z.

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