Question: Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $531,000 Every dollar of sales
Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $531,000 Every dollar of sales contributes 25 cents toward ficed costs and profit. The cost structure of a competitor. Jones \& Family, is dominated by foxed costs with a higher contribution margin ratio of 0.75 and fixed costs of $2,743,500. Every dollar of sales contributes 75 cents toward fixed costs and profit Both companies have sales of $4,425,000 annually. Required: a. Compare the two companies' cost structures b. Suppose that both companies experlence o 12 percent decrease in sales volume. By how much would each company's profits decreose? Complete this question by entering your answers in the tabs below. Compare the two companies' cost structures
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