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 0.40 and fixed costs of $113,400. Every dollar of sales contributes 40 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 $302,400. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $630,000 per 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. Sales Variable cost Contribution margin Fixed costs Operating profit SPRING COMPANY Amount Percentage WINTERS COMPANY Amount Percentage % % % % % % < Required A Required B >