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Exercise 3-35 (Algo) Analysis of Cost Structure (LO 3-2) Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $63,000 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 0.80 and fixed costs of $294.000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $420,000 per month Required: a. Compare the two companies' cost structures b. Suppose that both companies experience a 10 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 Peronntage % WINTERS COMPANY Amount Percentage Sales Variable cost Contribution margin Fland costs Operating prot Required 8 > Mat Exercise 3-35 (Algo) Analysis of Cost Structure (LO 3-2) Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $63,000. 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 0.80 and fixed costs of $294,000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $420,000 per month Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 10 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 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