Exercise 3-37 (Static) Analysis of Cost Structure (LO 3-2) Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $450,000. Every dollar of sales contributes 25 cents toward fixed costs and profit. The cost structure of a competitor, Jones & Family, is dominated by fixed costs with a higher contribution margin ratio of 0.75 and fixed costs of $2,325,000. Every dollar of sales contributes 75 cents toward fixed costs and profit. Both companies have sales of $3,750,000 annually. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 12 percent decrease in sales volume. By how much would each company's profits decrease? 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 Couzen's Company Jones & Family Amount Percentage Amount Percentage % % % % % % % % % % < Required A Required B > Exercise 3-37 (Static) Analysis of Cost Structure (LO 3-2) Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and fixed costs of $450,000. Every dollar of sales contributes 25 cents toward fixed costs and profit. The cost structure of a competitor, Jones & Family, is dominated by fixed costs with a higher contribution margin ratio of 0.75 and fixed costs of $2,325,000. Every dollar of sales contributes 75 cents toward fixed costs and profit. Both companies have sales of $3,750,000 annually. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 12 percent decrease in sales volume. By how much would each company's profits decrease? Complete this question by entering your answers in the tabs below. Required A Required B Suppose that both companies experience a 12 percent decrease in sales volume. By how much would each comp decrease? Couzen's Company's profits decrease by Jones & Family's profits decrease by < Required A Required B >