Question: Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $115,900, Every dollar of sales

 Spring Company's cost structure is dominated by variable costs with a

Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $115,900, 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 0.80 and fixed costs of $359,900. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $610,000 per month. Required: a. Compare the two companies' cost structures b. Suppose that both companies experience a 20 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 Amount Percentage WINTERS COMPANY Amount Percentage Sales Variable cost Contribution margin Fixed costs Operating profit Requited Required B >

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