Please help with both parts (a&b)
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $100,800. 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 080 and fixed costs of $268,800. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $420,000 for the month. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 10 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. ONE-MART GREENBACK STORE Amount Percentage Amount Percentage Sales Variable cost Contribution margin Fixed costs Operating profit % % The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $100,800. 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 $268,800. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $420,000 for the month. Required: a. Compare the two companies' cost structures b. Suppose that both companies experience a 10 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 Suppose that both companies experience a 10 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 by (Required A