Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the cost structure of dennis's retail mart is domi

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

50.1K

Verified Solution

Question

Accounting

image
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

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

Psychology
1.2K views

discuss the use of various painting formats and how these influence style and vice versa. 

Physics
1.2K views

300 C of electricity on solution deposited 2 977 of metal with atomic mass 106...

Calculus
1.2K views

The price of a home is 270 000 The bank requires a 5 down payment...

Algebra
1.2K views

Shown is the graph of a parabola y f x with vertex 2 1 What...

Accounting
1.2K views

E7-23 (similar to) Question Help Finance Organizer Printers, Inc., produces luxury checkbooks with three checks...

Accounting
1.2K views

On October 1, 2024, Flounder Corp. issued $780,000,9%,10-year bonds at face value. The bonds were...

Accounting
1.2K views

Novak Inc. reported the following partial statement of income data for the years ended December...

Accounting
1.2K views

Milwaukee, Inc. has three divisions: Bud, Wise, and Er. The results of May, 2016 are...

Accounting
1.2K views

The fixed overhead spending variance is calculated as the difference between actual overhead costs incurred...

Accounting
1.2K views

At the end of the fiscal year of 2019, Howdy Construction Co., Inc. has the...

Accounting
1.2K views

Lollapse Anonymous Week 8 Discussion posted 9 years ago last edited 1 year ago) Overall...

Accounting
1.2K views

Cash Receipt Systems Customers send checks and remittance advices by mail. Mail volume is typically...