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2. value: 33.33 points You did not receive full credit for this question in a previous attempt The Greenback Stores cost str

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Greenback
Answer a Greenback One Mart
Amount Percentage Amount Percentage
Sales 610,000.00 100% 610,000.00 100%
Variable cost 335,500.00 55% 122,000.00 20%
Contribution margin 274,500.00 45% 488,000.00 80%
Fixed costs 115,900.00 329,400.00
Operating profits 158,600.00 26.00% 158,600.00 26.00%
Answer b
If the sales volume of both companies will increase by 20% then contribution will also increase by same percent. Operating will increase by same amount as increase in contribution.
So, Greenback One Mart
Current Sales 610,000.00 610,000.00
Increase by 20% 20%
Increase amount 122,000.00 122,000.00
Contribution margin 45% 80%
Contribution amount     54,900.00     97,600.00
Operating profit will increase by $ 54,900.00 $ 97,600.00
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