aacountingThe cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution margin ratio of $0\mathrm{.}31$ and fixed costs of

$$72,120.$ Every dollar of sales contributes $31$ cents toward fixed costs and profit. The cost structure of a competitor, Oakfield

Convenience Store, is dominated by fixed costs with a higher contribution margin ratio of $0\mathrm{.}69$ and fixed costs of $$552,920.$ Every

dollar of sales contributes $69$ cents toward fixed costs and profit. Both companies have sales of $$1,202,000$ for the year.

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?

Answer is complete but not entirely correct.

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Required A

Compare the two companies' cost structures.