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The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $100,800. Every dollar of
The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $100,800. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of sales contributes 70 cents toward fixed costs and profit. Both companies have ominated by fixed costs with a higher contribution margin ratio of 0.70 and fixed costs of $244,800. Every dollar sales of $480,000 for the month. Required: Compare the two companies' cost structures. ONE-MART GREENBACK STORE Amount Percentage Amount Percentage Salos Variable cost Contribution margin % Fixed costs Operating profit % . Suppose that both companies experlence a 10 percent increase in sales volume. By how much would each company's profits Increase? Greenback Store's profits increase by One Mart's profits increase by
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