Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $78,000. Every dollar of sales contributes 45 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 305,500. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $650,000 per month. Required a. Compare the two companies' cost structures SPRING COMPANY WINTERS COMPANY Amount Percentage Amount Percentage Sales Variable cost Contribution margin Fixed costs Operating profit 650,000 1001% s 650,000 1001% b. Suppose that both companies experience a 10 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