Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $120,000. 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 0.70 and fixed costs of $457,500. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $750,000 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required A B Compare the two companies' cost structures. SPRING COMPANY WINTERS COMPANY Amount Percentage Amount Percentage $ $ Sales 100 % 100% 750,000 750,000 Variable 562,500 75 225,000 30 cost Contribution $ $ 25 % 70 % margin 187,500 Fixed costs 120,000 525,000 457,500 Operating profit $ 67,500 % $ 67,500 % < Required A Required B >