Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. can you please assist? coursherotranscribedtext: t

Can you please assist? CoursHeroTranscribedText: The Greenback Store's cost structure is dominated by variable costs...

90.2K

Verified Solution

Question

Accounting

Can you please assist?

image CoursHeroTranscribedText: The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $115,900. Every dollar of sales contributes 45 cents toward fixed costs and profit. The cost structure of a competitor, One-Mart, Is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $329,400. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $610,000 for the month. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 20 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. Required A Required B Compare the two companies' cost structures. GREENBACK STORE ONE-MART Amount Percentage Amount Percentage Sales 9% Variable cost Contribution margin 9% Fixed costs Operating profit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students