Question: CoursHeroTranscribedText: The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.30 and fixed costs of $55,200. Every dollar

 CoursHeroTranscribedText: The Greenback Store's cost structure is dominated by variable costs

CoursHeroTranscribedText: The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.30 and fixed costs of $55,200. Every dollar of sales contributes 30 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $285,200. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $460,000 for the month. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 15 percent increase in sales volume. By how much would each company's profits increase? Complete this question by entering your answers in the tabs below. Required A Required B Compare the two companies' cost structures. GREENBACK STORE ONE-MART Amount Percentage Amount Percentage Sales $ 460,000 $ 460,000 % Variable cost (322,000) (92,000) Contribution margin $ 138,000 % $ 368,000 % Fixed costs (55,200) (285,200) Operating profit $ 82,800 $ 138,000

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