So I just setup a quick mission to check, using the default scope that comes with TMO 2.5 and SCAF_RSRDC_502, you can calculate range manually. The formula at Hi-Power is:
(reference height in feet) x 100 / horizontal bars in scope = range in yards
SCAF gives you a reference point on each ship with the height above the waterline to the reference point in feet. Use that point to calculate range. There seems to be no problem to ID ships or see masts out to 8,000 yds. I did not test farther out. Manual calculation gives me the range with an error of less than 5%.
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