The Greenback stores cost structure is dominated by variable cost with a contribution margin ratio of 0.45 and fixed costs of 122,400. every dollar of sales contributes 45 cents towards fixed cost 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 towards fixed cost and profit. both companies have sales of 510,000 for the month.

compute the two companies cost structures

suppose that both companies experience a 15% increase in sales volume by how much would each company profits increase