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Check my work 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
Check my work 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 0.40 and fixed costs of $78,000. Every dollar of sales contributes 40 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 0.80 and fixed costs of $338,000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $650,000 for the month.
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