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The cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution margin ratio of 0.31 and fixed costs of $72.120. Every

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The cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution margin ratio of 0.31 and fixed costs of $72.120. Every dollar of sales contributes 31 cents toward fixed costs and profit. The cost structure of a competitor, Oakfield Convenience Store, is dominated by fixed costs with a higher contribution margin ratio of 0.69 and fixed costs of $552,920. Every dollar of sales contributes 69 cents toward fixed costs and profit. Both companies have sales of $1,202,000 for the year. 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? Suppose that both companies experience a 10 percent increase in sales volume. By how much would each company's profits increase? \begin{tabular}{|l|l|l|} \hline Dennis's Retail Mart's profits increase by & $337,9728 \\ \hline Oakfield Convenience Store's profits increase by & $ & 359,378 \\ \hline \end{tabular}

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