The cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution margin ratio of and fixed costs of
$ Every dollar of sales contributes 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 and fixed costs of $ Every
dollar of sales contributes cents toward fixed costs and profit. Both companies have sales of $ for the year.
Required:
a Compare the two companies' cost structures.
b Suppose that both companies experience a 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.
Suppose that both companies experience a percent increase in sales volume. By how much would each companys profits increase?
Dennis's Retail Mart's profits increase by
Oakfield Convenience Store's profits increase by
PLEASE BOTH A AND PART THANKS
