Q3Q4

Couzen's Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.26 and fixed costs of $535,500. Every dollar of sales contributes 26 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 0.76 and fixed costs of $2,766,750. Every dollar of sales contributes 76 cents toward fixed costs and profit. Both companies have sales of $4,462,500 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. Compare the two companies' cost structures. Compare the two companies' cost structures. 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. Suppose that both companies experience a 12 percent decrease in sales volume. By how much would each company's profits decrease