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The cost structure of Dennis's. Retal Mant is dominated by variable costs with a contribution margin ratio of 0.31 and fixed costs of $72120. Fvery
The cost structure of Dennis's. Retal Mant is dominated by variable costs with a contribution margin ratio of 0.31 and fixed costs of \$72120. Fvery dollar of sales contributes 31 cents toward fixed costs and profit The cost structure of a competitor, Oakfielif Conventence Store, is dominated by fored costs with o higher contribution margin ratio of 0.69 and fued costs of $552.920 Every doliar of sales contributes 69 cents toward fored costs and profit Both companies have sales of $1,202,000 for the yeat. Required: a. Compare the two comparies' cost structures. b. Suppose that both comparies expenence a 10 percent increase in soles volume. By how much would each company's profits increase? Complete this question by entering your anwwers in the tabs below. Compare the two cornparies' cost atructures
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