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The cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution...

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Accounting

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The cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution margin ratio of 0.32 and fixed costs of $84,280. Every dollar of sales contributes 32 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 0.68 and fixed costs of $565,880. Every dollar of sales contributes 68 cents toward fixed costs and profit. Both companies have sales of $1,204,000 for the year. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 15 percent increase in sales volume. By how much would each company's profits increase? Complete this question by entering your answers in the tabs below. Compare the two companies' cost structures

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