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Calculate the indifference point between two cost structures

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The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X = $2,401,000 + $52/ unit; Company Z = $1,076,000 + $102/unit. The selling price is $148 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.

Reference no: EM131797445

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