The cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution margin ratio of 0.33 and fixed costs of $74,520. Every dollar of sales contributes 33 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 0.67 and fixed costs of $596,160. Every dollar of sales contributes 67 cents toward fixed costs and profit. Both companies have sales of $1,242,000 for the year. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 10 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. Dennis's Retail Mart's Amount Sales Variable cost Contribution margin Fixed costs Operating profit Percentage % % % % % Required A Oakfield Convenience Store Amount Percentage Required B > % % % % %

The cost structure of Dennis's Retail Mart is dominated by variable costs with a contribution margin ratio of 0.33 and fixed costs of $74,520. Every dollar of sales contributes 33 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 0.67 and fixed costs of $596,160. Every dollar of sales contributes 67 cents toward fixed costs and profit. Both companies have sales of $1,242,000 for the year. Required: a. Compare the two companies' cost structures. b. Suppose that both companies experience a 10 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. Dennis's Retail Mart's Amount Sales Variable cost Contribution margin Fixed costs Operating profit Percentage % % % % % Required A Oakfield Convenience Store Amount Percentage Required B > % % % % %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hi! Can you help me solve this problem? Thank you
e unlimited liab shops, dog k ses
In a thoughtful and well-written response, answer the following: If you were thinking about writing a Letter of Last Instruction, what are some specific provisions you might put into the document?
Define Gift card.
Please send me answer as soon as possible
Write a about memorandum message
How does someone set up an RRSP account? What is an RRSP
Give me an example of ledger?