Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of $0\mathrm{.}30$ and fixed costs of $$526,500.$ Every dollar of sales contributes $30$ cents toward fixed costs and profit. The cost structure of a competitor, Jones & Family, is dominated by fixed costs with a higher contribution margin ratio of $0\mathrm{.}80$ and fixed costs of $$2,720,250.$ Every dollar of sales contributes $80$ cents toward fixed costs and profit. Both companies have sales of $$4,387,500$ 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.

Compare the two companies' cost structures.

$\backslash$table$[[$Sales$,$Couzen's Company,Jones & Family$],[$Amount$,$Percentage,Amount,Percentage$],[$$$4,387,500,,\%,$$$,4,387,500,100,\%$