Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $113.400. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, Winters Company, is dominated by fixed costs with a higher contribution margin ratio of 0.70 and fixed costs of $302,400. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $630,000 per 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 SPRING COMPANY WINTERS COMPANY Amount Percentage Amount Percentage 630,000 100% $ 630,000 100% $ Sales Variable cost Contribution margin Fixed costs Operating profit % (Required A Required B Chapter 3,4,5 Saved Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $113,400. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, Winters Company, is dominated by fixed costs with a higher contribution margin ratio of 0.70 and fixed costs of $302,400. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $630,000 per 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? -30 Complete this question by entering your answers in the tabs below. Required A Required Suppose that both companies experience a 15 percent increase in sales volume. By how much would each company's profits increase? Spring Company's profits increase by Winter Company's profits increase by