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Check part B please Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $255,
Check part B please
Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $255, 600. Every dollar of sales contributes 45 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 0.70 and fixed costs of $433, 100. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $710,000 per month. Required: Compare the two companies cost structures. Suppose that both companies experience a 10 percent increase in sales volume. By how much would each company's profits increase
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