Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.27...

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Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.27 and fixed costs of $540,000. Every dollar of sales contributes 27 cents toward fixed costs and profit. The cost structure of a competitor, Jones & Family, is dominated by fixed costs with a higher contribution margin ratio of 0.77 and fixed costs of $2,790,000. Every dollar of sales contributes 77 cents toward fixed costs and profit. Both companies have sales of $4,500,000 annually. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 12 percent decrease in sales volume. By how much would each company's profits decrease? Complete this question by entering your answers in the tabs below. Required A Required B Compare the two companies' cost structures. Sales Variable cost Contribution margin Fixed costs Operating profit Couzen's Company Jones & Family Amount Percentage Amount Percentage % % % % % % % % % % Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.27 and fixed costs of $540,000. Every dollar of sales contributes 27 cents toward fixed costs and profit. The cost structure of a competitor, Jones & Family, is dominated by fixed costs with a higher contribution margin ratio of 0.77 and fixed costs of $2,790,000. Every dollar of sales contributes 77 cents toward fixed costs and profit. Both companies have sales of $4,500,000 annually. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 12 percent decrease in sales volume. By how much would each company's profits decrease? Complete this question by entering your answers in the tabs below. Required A Required B Compare the two companies' cost structures. Sales Variable cost Contribution margin Fixed costs Operating profit Couzen's Company Jones & Family Amount Percentage Amount Percentage % % % % % % % % % %