The greenback store’s cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $100,800. every dollar of sales contributes 40 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 0.70 and fixed costs of $244,800. every dollar of sales contributes 70 cents toward fixed costs and profit. both companies have sales of $480,000 for the month. required: a. compare the two companies’ cost structures. b. suppose that both companies experience a 10 percent increase in sales volume. by how much would each company’s profits increase?
Answers: 2
![\left[\begin{array}{ccc}&$greenback&$one-Mart\\$sales&480,000&480,000\\$variable cost&288,000&144,000\\$contribtuion&192,000&336,000\\$fixed&100,800&244,800\\$operating&91,200&91,200\\\end{array}\right]](/tpl/images/0255/1652/aeebc.png)
Other questions on the subject: Business
Business, 22.06.2019 06:30, Shavaila18
Select all that apply. what do opponents of minimum wage believe are the results of minimum wage? increases personal income results in job shortages causes unemployment raises prices of goods
Answers: 1
Business, 22.06.2019 23:00, kavron2322
Draw a flowchart for a process of interest to you, such as a quick oil-change service, a factory process you might have worked in, ordering a pizza, renting a car or truck, buying products on the internet, or applying for an automobile loan. identify the points where something (people, information) waits for service or is held in work-in-process inventory, the estimated time to accomplish each activity in the process, and the total flow time. evaluate how well the process worked and what might be done to improve it.
Answers: 2
Business, 23.06.2019 02:20, chaanah
The director of the federal trade commission (ftc) bureau of consumer protection warned that the agency would bring enforcement action against small businesses that select one: a. failed to inform the public about network failures in a timely manner b. failed to transmit sensitive data c. did not report security breaches to law enforcement d. lacked adequate policies and procedures to protect consumer data.
Answers: 2
You know the right answer?
The greenback store’s cost structure is dominated by variable costs with a contribution margin ratio...
Questions in other subjects:
Biology, 06.12.2019 00:31
