Question: 238 points Spring Company's cost structure is dominated by variable costs with a contribution margin ra of 025 and fixed costs of S100,000. Every dollar
238 points Spring Company's cost structure is dominated by variable costs with a contribution margin ra of 025 and fixed costs of S100,000. Every dollar of sales contributes 25 cents toward fixed costs and profit. The cost structure of a competi Winters Company, is dominated by foxed costs with a higher contribution ratio of0.80 and fixed costs of $430,000. Every dollar of margin sales contributes 80 cents toward fixed costs and profit Both companies have sales of$600.000 per month. Required a. Compare the two companies cost structures, WINTERS COMPANY SPRING COMPANY Amount Percentage Amount Percentage 75 Contribution margin 150000
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