Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $100,000. Every dollar of sales contributes 25 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 0.80 and fixed costs of $430,000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $600,000 per month. Required a. Compare the two companies' cost structures. SPRING COMPANY Percen WINTERS COMPANY Amount Amount Percenta Sales Variable cost Contribution margin Fixed costs Operating profit b. Suppose that both companies experience a 20 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