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cupkakekawaii45
cupkakekawaii45
19.02.2020 • 
Business

Spring Company’s cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of $119,700. Every dollar of sales contributes 40 cents toward fixed costs and profit. The cost structure of a competitor, Winters Company, is dominated by fixed costs with a higher contribution margin ratio of 0.80 and fixed costs of $347,700. Every dollar of sales contributes 80 cents toward fixed cost and profit. Compare the two companies's cost structure.

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