Question: please look at section B and D. Section b. please compare the structure of the manufacturing costs for each of the firms. li one paragraph,

 please look at section B and D. Section b. please compare
the structure of the manufacturing costs for each of the firms. liplease look at section B and D.
Section b. please compare the structure of the manufacturing costs for each of the firms. li one paragraph,
Section D. please do a margin comparrison, please see the second sheet for the information.

Cost Structure: Compute the cost structure for each firm. You will need to calculate three variables for both companies 1. Variable Cost per Dollar of Sales - Change in Cost of Products Sold / Change in Sales: 2. Total Variable Cost = Variable Cost per Dollar of Sales Sales: 3. Total Fixed Cost = Total Cost of Product Sold - Total Variable Cost: ructure of Manufacturing Cost: In one paragraph, compare the structure of manufacturing costs for each firm: ected Financial Information: Compute the projected sales, cost of products sold, gross profit, and gross margin (gross profit as a percent ach firm for Year +1 through Year +5. Using the table below or a similar spreadsheet is recommended. Year +1 5477.85 3111.42 Year +2 6025.64 3422.56 Year +3 7230.76 4107.07 Year 4 6507.69 3696.69 Year +5 5206.15 2957.09 AK Steel Sales Less Cost of Product Sold: Variable Cost (0.568 of Sales) Fixed Costs Total Costs of Products Sold Gross Profit Gross Margin % 1590.74 4702.16 775.69 14.16 1590.74 5013.30 1012.33 16.80 1590.74 5697.81 1532.95 21.20 1590.74 5287.11 1220.58 18.76 1590.74 4547.83 658.32 12.64 Year +1 11945.85 7322.81 Year +2 13140.44 8055.09 Year +3 15768.52 9666.10 Year +4 14191,67 8699.49 Year +5 11353.34 6 959.59 Nucor Sales Less Cost of Product Sold: Variable Cost (0.613 of Sales) Fixed Costs Total Costs of Products Sold Gross Profit Gross Margin % 2154.90 9477.71 2468.14 20.66 2154.90 10209.99 2930.45 22.30 2154.90 11821.00 3947.52 25.03 2154.90 10854.39 3337.28 25.52 2154.90 9114.49 2238.84 19.72 D. Gross Margin Comparison: In one to two paragraphs, explain why the levels and variability of the gross margin percentages differ for these two firms for Year +1 through Year +5. Provide an example comparing the effect of the change in gross margin. (For example, if gross margin changed from 25% to 35%, what would it mean for each company?)

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