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Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and feed costs of $115.500. Every dollar of sales

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Spring Company's cost structure is dominated by variable costs with a contribution margin ratio of 0.25 and feed costs of $115.500. Every dollar of sales contributes 25 cents toward fixed costs and profit. The cost structure of a competitor. Winter Company is dominated by fived costs with a higher contribution margin ratio of 0.80 and food costs of $539,000. Every dollar of sales contributes 30 cents toward and costs and prof. Both companies have sales of S770.000 per month Required: a. Compare the two come costructures SPRING COMPANY At Percentage WINTERS COMPANY Amount Percentage Bas We Consomag Fotos Operating profil 1. Suppose that both opernce a 10 percent increase in sales volume. By how much would each company profits increase? Berg Cost Wwer Control

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