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:

Required:

What sales volume, in units, is needed for the total 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$/$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?

Complete this question by entering your answers in the tabs below.

What sales volume, in units, is needed for the total costs in each cost$-$structure alternative to be the same?