Question: The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $107,200. Every dollar of

 The Greenback Store's cost structure is dominated by variable costs with
a contribution margin ratio of 0.45 and fixed costs of $107,200. Every

The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $107,200. Every dollar of sales contributes 45 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, is dominated by fixed costs with a higher contribution margin ratio of 070 and fixed costs of $274,700. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $670,000 for the 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. ONE-MART Amount Percentago So Sales Variable cost Contribution margin Fixed costs Operating profil GREENBACK STORE Amount Percentage $ 670 000 100% 368,500 55 $ 301.500 45% 107 200 16 $ 194 300 291% The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 045 and foed costs $107,200. Every dollar of sales contributes 45 cents toward fixed costs and profit. The cost structure of a competitor One Man dominated by fixed costs with a higher contribution margin ratio of 0.70 and fixed costs of $274700. Every dollar of sales.com 70 cents toward fixed costs and profit. Both companies have sales of $670,000 for the 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 pe Increase? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that both companies experience a 20 percent increase in sales volume. By how much would each company's profits increase? 60,300 Greenback Store's profits increase by One-Mart's profits increase by

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