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Please help me with this! It is the only question I can't figure out, and the assignment is due in one hour! Time remaining: 1:44:20
Please help me with this! It is the only question I can't figure out, and the assignment is due in one hour!
Time remaining: 1:44:20 4. value: 0.66 points The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $122,400. Every dollar of sales contributes 45 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 0.70 and fixed costs of $249,900. Every dollar of sales contributes 70 cents toward fixed costs and profit. Both companies have sales of $510,000 for the month. Required: a. Compare the two companies' cost structures. GREENBACK STORE Amount Percentage $ 510,000 100 % ONE-MART Amount Percentage $ 510,000 100 % Sales Variable cost Contribution margin Fixed costs Operating profit % b. Suppose that both companies experience a 15 percent increase in sales volume. By how much would each company's profits increase? Greenback Store's profits increase by One-Mart's profits increase byStep by Step Solution
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