TWO: CHAPTER THREE HOMEWORK 0 Sayed Exercise 3-34 (Algo) Analysis of Cost Structure (LO 3-2) The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $113,400. 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 0.70 and fixed costs of $270,900. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $630,000 for the 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? Complete this question by entering your answers in the tabs below. Required A Required B Compare the two companies' cost structures. GREENBACK STORE Amount Percentage ONE-MART Amount Percentage ences Sales Variable cost Contribution margin Fixed costs Operating profit Required B > WEEK TWO: CHAPTER THREE HOMEWORK Exercise 3-34 (Algo) Analysis of Cost Structure (LO 3-2) The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $113.400. 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 0.70 and fixed costs of $270,900. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $630,000 for the month. 20 DOS Skipped 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? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that both companies experience a 15 percent increase in sales volume. By how much would each company's profits increase? References Greenback Store's profits increase by One Mart's profits increase by (Required A