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help solve parts a and b CoursHeroTranscribedText: The Greenback Store's cost structure is dominated by...

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Accounting

help solve parts a and b

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CoursHeroTranscribedText: The Greenback Store's cost structure is dominated by variable costs with a contribution margin ratio of 0.45 and fixed costs of $103,500. 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 $345,000. Every dollar of sales contributes 80 cents toward fixed costs and profit. Both companies have sales of $690,000 for the month. Required: a. Compare the two companies' cost structures. GREENBACK STORE ONE-MART Amount Percentage Amount Percentage Sales % Variable cost Contribution margin Fixed costs Operating profit % % b. Suppose that both companies experience a 15 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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