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Saved 5703 The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0 45 and fixed costs of
Saved 5703 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 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 Amount GREENBACK STORE Percentage ONE MART Amount Percentage Required >
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