What sales volume will tactics ltd management be indifferent

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Tactics Ltd is deciding between two cost structures:

                                     Labour intensive               Capital intensive

Variable cost per unit         60                                45

Annual fixed costs             250,000                       400,000

Tactics Ltd's selling price for its product is $120 per unit.

Required:

Problem 1: What sales volume will Tactics Ltd's management be indifferent as to the alternative cost structures?

Reference no: EM132707667

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